Analisis Kausalitas dan Kointegrasi antara Penanaman Modal Asing dengan Pertumbuhan Ekonomi Sumatera Utara

Abstract

This research titled “Analysis Causality and Cointegration between Foreign Investment and Economic Growth in North Sumatera”. The goal of this research try to analysis the causality and cointegration relationship between foreign investment and economic growth in North Sumatera. This research uses annual data during 1986 until 2008, by using method of cointegration test and granger causality test and it’s processed by using Eviews 5. Before using cointegration test and granger causality test, this research unit roots test to show statisionery time series data. The unit roots test that foreign investment and economic growth has statisionary at 2difference data with confidence level α = 1 %. T he c ointegration test show that foreign investment and economic growth in North Sumatera has a consistent relationshop in the long term. And, granger causality test show there is one way relation between economic growth and foreign investment which is economic growth is the function of foreign investment in other word, economic growth causes the increase or decrease of foreign investment in North Sumatera.