THE EFFECT OF FOREIGN DEBT, FOREIGN INVESTMENT (FDI), AND GOVERNMENT SPENDING ON ECONOMIC GROWTH IN 5 ASEAN COUNTRIES

Asnawi Asnawi, Padhil Hasyim, Khairil Anwar, Muhammad Roni

Abstract


This study aims to analyze the effect of foreign debt, foreign investment and Government spending on Economic Growth in 5 Asean Countries. The data used in this study is cross-sectiaon data from 2011-2020 obtained from the World Bank. The data is then analyzed using the Panel data regression model. The results of this study show that foreign debt has a positive and significant effect on economic growth in 5 asean countries. Foreign investment has no positive and significant effect. And Government spending has a positive and significant effect on economic growth in 5 Asean countries. The government is advised to carefully manage foreign debt to create positive Economic Growth, Create a conducive Investment climate and increase spending to boost Economic Growth.

Keywords


Economic Growth, External Debt, Foreign Investment, Government Spending, Panel Data Regression

Full Text:

PDF

References


Akbar, Muhammad Yoga. (2019). The Influence of Budget Deficits, Government Spending, Foreign Direct Investment, and Inflation on Economic Growth in Asean Countries .

Bonokeling, DE (2016). The Influence of Foreign Debt, Labor, and Exports on Indonesia's Gross Domestic Product 1986 - 2015 (Issue May) [Yogyakarta State University]. Http://Etd.Lib.Metu.Edu.Tr/Upload/12620012/Index.Pdf

Fadhillah, A. (2021). The Impact of Investments, Projects and Foreign Debt on Indonesian Poverty in 2010-2020 . 12 (1), 1–10. Https://Doi.Org/10.33087/Exsis.V12i1.216

Febryani, T. (2017). Determinants of Economic Growth in 4 ASEAN Countries. Journal of Applied Economics , 2 (1), 10–20. Https://Doi.Org/10.20473/Jiet.V2i1.5501

Ferry, P. (2012). Public Economics Module, Part V: Theory of Government Spending. Journal Of Chemical Information And Modeling, 53 (9), 1689–1699. Http://Ferryfebub.Lecture.Ub.Ac.Id/Files/2013/01/Jadian-V-Teori-Pengeluaran-Government.Pdf

Gujarati, D. And Porter, D, C. (2012). Basic Econometrica. In Basic Econometrica (5th Ed.). McGraw Hill.

Heydar, MI (2021). Analysis of Economic Growth in Asean Countries Analysis Of Economic Growth in Asean Countries. Economic Forum , 23 (3), 593–605.

Ichvani, LF, & Sasana, H. (2019). Effects of Corruption, Consumption, Government Spending and Trade Openness on Economic Growth in Asean 5. Journal Rep (Development Economic Research) , 4 (1), 61–72. https://Doi.Org/10.31002/Rep.V4i1.1342

Junaedi, Dedi. (2018). The Relationship Between Foreign Debt With The Economy And Poverty: A Comparison Between Government Regimes. National Symposium on State Finance, 1 (1), 563–587. Https://Jurnal.Bppk.Kemenkeu.Go.Id/Snkn/Article/View/154

Mahzalena, Y., & Juliansyah, H. (2019). The Influence of Inflation, Government Expenditures and Exports on Economic Growth in Indonesia . 02 (April), 37–50.

Meilaniwati, H., & Tannia, T. (2021). Analysis of the Influence of Foreign Investment (Pma), Domestic Investment (Pmdn), Trade Openness (To) and Inflation on Economic Growth in Asean-5 in 2009-2018. Business Management Journal , 17 (1), 89. Https://Doi.Org/10.30813/Bmj.V17i1.2582

Nahumuri, LL (2019). The Essence and Urgency of Government Spending for Regional Development. Suara Khatulistiwa Journal of Government Science , 4 (1), 1–12. Https://Doi.Org/10.33701/Jipsk.V4i1.597

Novia, AD (2012). Comparative Analysis of Durbin-Watson and Breusch-Godfrey Autocorrelation Tests. Maulana Malik Ibrahim State Islamic University .

Purnama, NI (2014). Unemployment Rate in Medan City . 69–76. Http://Jurnal.Umsu.Ac.Id/Index.Php/Ekawan/Article/View/1031

Purwanto, NP, & Mangeswuri, DR (2014). The Effect of Foreign Investment and Foreign Debt on Indonesia's Economic Growth. Journal of Economics & Public Policy , 2 (2), 681–706.

Sari, ACP, & Kaluge, D. (2018). Analysis of the Factors Influencing the Economic Growth of Asean Member Countries in 2011-2016. Asian Scientific Journal of Business and Economics , 11 (1), 24–29. Https://Doi.Org/10.32812/Jibeka.V11i1.26

Soleh, A., & Anitasari, M. (2012). The Influence of Government Spending on Economic Growth in Bengkulu Province. Ekombis Review, 117–127.

Syafi'i, I., Syakur, FA, & Wibowo, MG (2021). Effects of Foreign Debt, Inflation, and State Income on Economic Growth: Studies in 6 Asean Countries. Welfare Journal of Economics , 2 (1), 36–43.

Wihastuti, L. (2008). Indonesia's Economic Growth: Determinants and Prospects. Journal of Economics & Development Studies , 9 (1), 30660.

Yuniarti, P., Wianti, W., & Nurgaheni, NE (2020). Analysis of the Factors Affecting the Rate of Economic Growth in Indonesia. Serambi: Journal of Islamic Business and Management Economics , 2 (3), 169–176. Https://Doi.Org/10.36407/Serambi.V2i3.207




DOI: https://doi.org/10.29103/jmpe.v6i1.12138

Article Metrics

 Abstract Views : 299 times
 PDF Downloaded : 44 times

Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Asnawi Asnawi, Padhil Hasyim, Khairil Anwar, Muhammad Roni

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Stat Counter

Flag Counter