Pengaruh Utang Luar Negeri terhadap Pertumbuhan Produk Domestik Bruto (PDB) Pertanian di Indonesia

Abstract

The relationship between external debt and agricultural productivity is a very important topic in developing countries. This study shows that external debt is a catalyst for increasing agricultural GDP growth in Indonesia. Understanding how these two variables interact is crucial for policymakers as it has far-reaching implications for food security, poverty alleviation, and overall economic stability. This study explains the direct and significant effect of external debt on agricultural GDP growth in Indonesia. This means that external funds have not been channeled and used optimally to stimulate agricultural output. The study also investigates the short-term and long-term effects of variables of interest on agricultural GDP growth such as agricultural exports and agricultural labor. The results show that external debt servicing has a negative and significant impact on agricultural GDP growth, indicating that Indonesia has not been able to fulfill its debt obligations. The results of the control variable agricultural exports have a positive impact while the control variable agricultural labor has a negative effect.