The relationship between economic growth and macroeconomic indicators in Indonesia

Information
Title: The relationship between economic growth and macroeconomic indicators in Indonesia
Issue: Vol. 13, No 2, 2020
Published date: 06-2020 (print) / 06-2020 (online)
Journal: Journal of International Studies
ISSN: 2071-8330, eISSN: 2306-3483
Authors: Dwi Wulandari
Universitas Negeri Malang

Sugeng Hadi Utomo
Universitas Negeri Malang

Bagus Shandy Narmaditya
Universitas Negeri Malang
Keywords: macroeconomic factors, export, e-money, economic growth, Indonesian economy
DOI: 10.14254/2071-8330.2020/13-2/10
DOAJ: https://doaj.org/article/6d6f04d32122431381b1da8e936e2931
Language: English
Pages: 139-148 (10)
JEL classification: E51, F43, P33
Website: https://www.jois.eu/?608,en_the-relationship-between-economic-growth-and-macroeconomic-indicators-in-indonesia
File https://www.jois.eu/files/10_11_762_Wulandari%20et%20al.pdf
Licenses:
We are grateful to anonymous referees and editor of the journal for their valuable comments and suggestions in order to improve the quality of the article. Usual disclaimers apply.
Abstract

This study aims to determine the relationship between macroeconomics variables, including investment, export, and e-money transactions towards economic growth in Indonesia. This research applied Vector Error Correction Model (VECM) in order to determine long-term and short-term relationships between the variables. This research used quarterly time-series data during 2010-2017 from the Central Bank of Indonesia, Statistics Indonesia and Investment Coordination Board in Indonesia. For the analysis purposes, the study used a stationary test, long-lag test, cointegration test, and a causality test. The empirical results of this study show that in both short and long terms, investment has a positive impact on economic growth in Indonesia, while export and e-money transactions have a negative impact on economic growth in Indonesia during the research period. These findings provide insights for future research on investments, as both physical investment and human investment may potentially boost economic growth.

Bibliography

1. Aliman, A., & Purnomo, A.B. (2001). Kausalitas Antara Ekspor dan Pertumbuhan Ekonomi. Journal of Indonesian Economy and Business, 16(2), 122-137.

2. Antwi, S., Mills, E.F.A., & Zhao, X. (2013). Impact of macroeconomic factors on economic growth in Ghana: A cointegration analysis. International Journal of Academic Research in Accounting, Finance and Management Sciences, 3 (1), 35-45.

3. Bank Indonesia. (2006). Upaya Meningkatkan Penggunaan lat Pembayaran Non Tunai Melalui Pengembangan E-Money. Working Paper Bank Indonesia. Jakarta, Indonesia, pp. 1-43.

4. BKPM. (2018). Domestic and Foreign Direct Investment Realization in Quarter IV and January – December 2017. Indonesia Investment Coordinating Board (BKPM), Indonesia, available at https://www.bkpm.go.id/ (accessed 5 January 2019).

5. Bilan, Y., Mishchuk, H., Samoliuk, N., & Grishnova, O. (2019). ICT and Economic Growth: Links and Possibilities of Engaging. Intellectual Economics, 13(1), 93-104.

6. Chirwa, T.G., & Odhiambo, N.M. (2016). Macroeconomic determinants of economic growth: a review of international literature. South East European Journal of Economics and Business, 11(2), 33-47.

7. Fitriadi, F., Rochaida, E., & Taufik, M. (2014). Pengaruh Investasi Dan Ekspor Terhadap Pertumbuhan Ekonomi Serta Penyerapan Tenaga Kerja Provinsi Kalimantan Timur. Jurnal Ekonomi Kuantitatif Terapan, 7(2), 183-198.

8. Hameed, I., Iqbal, A., & Devi, K. (2012). Relationship between exports and economic growth of Pakistan. European Journal of Social Sciences, 32(3), 453-460.

9. Hartini, D., & Utomo, Y.P. (2017). Analisis Pengaruh Inflasi Terhadap Pertumbuhan Ekonomi di Indonesia dengan Metode Final Prediction Error. Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan, 5(1), 42-49.

10. Jhingan, M.L. (2008). Ekonomi Pembangunan dan Perencanaan. Raja Grafindo Publisher, Jakarta, Indonesia.

11. Jordaan, A.C., & Eita, J.H. (2007). Export and economic growth in Namibia: a Granger causality analysis. South African Journal of Economics, 75(3), 540-547.

12. Kartikasari, D. (2017). The Effect of Export, Import and Investment to Economic Growth of Riau Island Indonesia. International Journal of Economics and Financial Issues, 7(4), 663-667.

13. Korauš, A., Simionescu, M., Bilan, Y., & Schönfeld, J. (2017). The impact of monetary variables on the economic growth and sustainable development: Case of selected countries. Journal of Security and Sustainability Issues, 6(3), 383-390.

14. Kumari, N., & Khanna, J. (2007). Cashless payment: a behavior change to economic Growth. Journal of Scientific Research and Education, 5(7), 6701-6710.

15. Lintangsari, N., Hidayati, N., Purnamasari, Y., Carolina, H., & Febranto, W. (2017). Analisis Pengaruh Instrumen Pembayaran Non Tunai Terhadap Stabilitas Sistem Keuangan di Indonesia. Jurnal Dinamika Ekonomi Pembangunan, 1(1), 47-62.

16. Momongan, J.E. (2013). Investasi PMA Dan PMDN Pengaruhnya Terhadap Perkembangan PDRB dan Penyerapan Tenaga Kerja Serta Penaggulangan Kemiskinan di Sulawesi Utara. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi, 1(3), 530-539.

17. Muazi, N.M., & Arianti, F. (2013). Analisis Pengaruh Pennaman Modal Asing dan Penanaman Modal Dalam Negeri Terhadap Pertumbuhan Ekonomi: di Jawa Tengah 1990-2010. Diponegoro Journal of Economics, 2(1), 1-9.

18. Oyewole, O.S., El-Maude, J.G., Abba, M., & Onuh, M.E. (2013). Electronic payment system and economic growth: a review of transition to cashless economy in Nigeria. Int J Sci Eng Technol, 2(9), 913-918.

19. Paramita, A.A., & Purbadharmaja, I.B. (2015). Pengaruh Investasi dan Pengganguuran Terhadap Pertumbuhan Ekonomi Serta Kemiskinan di Provinsi Bali. Jurnal ekonomi Pembangunan Universitas Udayana, 4(10), 1194-1218.

20. Priyono, D., & Wirathi, I.G.A.P. (2016). Analisis Hubungan Ekspor, Pertumbuhan Ekonomi, dan Kesempatan Kerja di Provinsi Bali: Pengujian Vector Auto Regression. E-Jurnal Ekonomi Pembangunan Universitas Udayana, 5(12), 1408-1534.

21. Purnawati, A., & Fatmawati, S. (2013). Dasar-Dasar Ekspor dan Impor Teori, Praktik, dan Prosedur. UPP STIM YKPN Publisher: Yogyakarta, Indonesia.

22. Sharma, R., Kautish, P., & Kumar, D.S. (2018). Impact of selected macroeconomic determinants on economic growth in India: An empirical study. Vision, 22(4), 405-415.

23. Simionescu, M., Lazányi, K., Sopková, G., Dobeš, K., & Balcerzak, A. P. (2017a). Determinants of economic growth in V4 countries and Romania. Journal of Competitiveness, 9(1), 103-116. DOI: 10.7441/joc.2017.01.07

24. Simionescu, M., Bilan, Y., & Štreimikienė, D. (2017b). The impact of biodiesel consumption by transport on economic growth in the European Union. Technological and Economic Development of Economy, 23(4), 667-686.

25. Slozko, O., & Pelo, A. (2014). The electronic payments as a major factor for futher economic development. Economics & Sociology, 7(3), 130.

26. Soseco, T. (2016). Effect of E-Money to Economic Performance (A Comparative Study of Selected Countries. The International Conference of Management Sciences, UMY, Indonesia, pp. 9-12.

27. Suharjon., Marwanti, S., & Irianto, H. (2017). Pengaruh Ekpor, Impor dan Investasi Terhadap Pertumbuhan Sektor Pertanian Indonesia. Jurnal Agro Indonesia, 35(1), 49-65.

28. Ucan, O., Akyildiz, A., & Maimaitiaili, M. (2016). The relationship between export and economic growth in Turkey. European Scientific Journal, 12(10), 61-70.

29. Wulandari, D., Soseco, T., & Narmaditya, B.S. (2016). Analysis of the use of electronic money in efforts to support the less cash society. International Finance and Banking, 3(1), 1-10.

30. Zandi, M., Singh, V., & Irving, J. (2013). The impact of electronic payments on economic growth. Moody’s Analytics: Economic and Consumer Credit Analytics, available at http://www.nocash.info.ro/, (accessed 22 January 2019).