The Influence of Economic Openness and Foreign Investment on Economic Growth in Indonesia
Keywords:
Economic Openness, Foreign Investment, Economic GrowthAbstract
One of the main goals of Indonesia's economic development is economic growth. The belief that there is a positive correlation between Indonesia's economic growth and economic openness and foreign investment underlies this research that efforts to increase investment and encourage economic openness are necessary to achieve high economic growth. This research aims to measure, determine and explain the relationship between economic openness and foreign investment on Indonesia's economic growth through a quantitative approach based on secondary data. The method used is quantitative regression analysis to evaluate the relationship between the independent variables (economic openness and foreign investment) and the dependent variable (economic growth). Secondary data was collected from various international and national publications, including reports from the World Bank and IMF. The research results show that economic openness and foreign investment have a positive and significant impact on Indonesia's economic growth. Increased exports, imports and inflow of foreign capital contribute to increasing Gross Domestic Product (GDP) and accelerating economic development in Indonesia. Therefore, it is recommended that there be policies that support economic openness and foreign investment to increase Indonesia's economic growth in a sustainable manner
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