The Effect of Some Economic Variables on Economic Growth in Indonesia Period 2010- 2017
Nur Azm Karim1, Chyntia Ika Ratnapuri2
1Nur Azmi Karim*, Binus University, Indonesia.
2Chyntia Ika Ratnapuri*, Binus University, Indonesia.
Manuscript received on September 11, 2019. | Revised Manuscript received on October 15, 2019. | Manuscript published on October 30, 2019. | PP: 757-761 | Volume-9 Issue-1, October 2019 | Retrieval Number: A1364109119/2019©BEIESP | DOI: 10.35940/ijeat.A1364.109119
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Exchange rate fluctuations are caused by interactions between economic factors and non-economic factors. The purpose of this study is to see the effect of the fluctuations in the rupiah exchange rate on economic growth along with several macro variables in Indonesia. The analytical method used in this study is multiple regression methods, namely testing the hypothesis about the effect of rupiah exchange rate fluctuations (KURS), inflation (INF), Foreign Direct Investment (FDI), Indonesian bank certificate interest rate (SBI), and Money Supply (JUB ) to the Indonesian economy (GRDP). The data used in this study are secondary data taken from Bank Indonesia, the Central Bureau of Statistics, and the World Bank. The research method used is multiple linear regrelsi method using eviews application. The results of this study indicate the exchange rate, inflation and the money supply have a negative direction with economic growth while foreign investment (FDI) and interest rates on Bank Indonesia Certificates (SBI) have a positive and significant direction towards economic growth in Indonesia.
Keywords: Exchange Rate, Inflation, FDI Indonesian bank certificate interest rate, Money supply, GRDP.