The Influence Of Exports, Imports, And Foreign Investment On Economic Growth In Indonesia

Abstract

This study analyzes the effect of exports, imports, and Foreign Direct Investment (FDI) on Indonesia's economic growth using the Autoregressive Distributed Lag (ARDL) approach for the period 1985–2024. The results show a long-term cointegration relationship between trade, foreign investment, and Gross Domestic Product (GDP), as well as a significant adjustment mechanism toward equilibrium. However, partially, exports and imports do not have a significant effect on growth, while FDI is positively directed but not yet statistically significant. These findings affirm that economic openness has a structural link with growth, but its effectiveness is largely determined by the quality of trade structures and domestic capacity.