Indonesia's Economic Growth: Determinants and Prospects

Lusmino Basia, Bambang Agus Pramuka, Diah Setyorini Gunawan


The benchmark of success in measuring a country's economic development is economic growth in the country. As for what can be used as a benchmark for measuring economic growth, among them are natural resources, human resources, and government finances. In this study, researchers aim to determine the effect of inflation, government spending, stock prices, and labor on economic growth. using secondary data and using research methods with a quantitative approach. The type of data used is secondary data from 2017–2021 (quarter data), using multiple linear regression analysis methods using the E-Views 9.0 analysis tool. The results of this study indicate that the inflation variable and stock prices partially have a significant positive effect on economic growth, while the government expenditure and labor variables are proven to partially have a negative and insignificant effect on economic growth. The R-squared value is 0.757149, meaning that the inflation, government spending, stock prices, and labor variables are able to explain and influence the government spending variable by 75.7149%, and the remaining 24.2851% is influenced by variables outside this research model.

Keywords: inflation, government expenditure, stock price, and labor

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