Determinan Pertumbuhan Ekonomi di 5 Negara Organisasi Kerjasama Islam

Abstract

This research aims to determine the effect of labor variables, gross fixed capital formation, and foreign direct investment on economic growth in 5 OIC countries in the long and short term. The type of research used is a quantitative approach. Using panel data with the time period 1992-2021 obtained from the official World Bank website. The research objects are the OIC countries which include Indonesia, Saudi Arabia, Türkiye, the United Arab Emirates and Nigeria. The data analysis technique in this research uses the ARDL Panel method with using Eviews 12. The research results show that the labor variable in the long term has a positive and significant effect on economic growth in the 5 OIC countries, while in the short term it has a positive and insignificant effect at lags 0, 1, and 2 on economic growth in the 5 OIC countries. The gross fixed capital formation variable in the long term has a positive and significant effect on economic growth in 5 OIC countries, while in the short term it has a positive and significant effect on lags 0 and 1, and positive and insignificant on lag 2 on economic growth in 5 OIC countries. The foreign direct investment variable in the long term has a positive and significant effect on economic growth in 5 OIC countries, while in the short term it has a negative effect on economic growth in 5 OIC countries.