Pengaruh Utang Luar Negeri dan Investasi Asing Langsung terhadap Pertumbuhan Ekonomi di Lima Negara Anggota ASEAN

Abstract

All countries in the world expect positive and stable economic growth in order to meet the needs of their populations and to cover budget deficits. However, the reality is not always so, as economic growth is influenced by several factors. This research aims to examine how external debt (ED) and foreign direct investment (FDI) impact economic growth, as measured by gross domestic product (GDP) in five ASEAN member countries (Indonesia, Malaysia, Thailand, Vietnam and the Philippines). This research is quantitative, focusing on the variables of external debt, foreign direct investment and economic growth in five ASEAN member countries. The research uses panel data regression method, which combines time series and cross-sectional data. This research starts from 2008 to 2018, with secondary data published by the World Bank, International Monetary Fund, ASEAN Exchanges and Our World In Data. Data processing was conducted using Eviews 10 and the research uses panel data analysis with the random effects model (REM) method. The results showed that simultaneously external debt and foreign direct investment have a significant impact on economic growth in the five ASEAN member countries. Meanwhile, individually, external debt shows an effect but not significant on economic growth, while foreign direct investment shows a significant effect on economic growth.