The Impact Of Exports, Foreign Direct Investment (FDI), and Labor Force on Economic Growth of Indonesia From 2018-2021

Abstract

Economic growth has become an indispensable need for developing countries because it is the most potent tool in eradicating poverty and increasing the quality of life. The main objective of this research is to analyze the impact of select factors, namely Exports, Foreign Direct Investment (FDI), and Labor Force, on Indonesia's economic growth in 2018-2021. This research utilized the panel data regression method and requires time- series data from 2018-2021 and cross-section data from 34 Provinces of Indonesia. The independent variables used Exports, Foreign Direct Investment, and the Labor Force, while the dependent variable was Indonesia's economic growth in 2018- 2021. The result of this research showed that the impact of Exports, FDI, and Labor Force on Indonesia's economic growth from 2018-2021 was positively significant. Therefore, the researcher advises the government to place exports and FDI as top priorities in policymaking and seriously improve the labor force and labor quality.