Associative Study on Government Spending, Inflation, Trade Balance, and Gross Domestic Product

Sujianto, Agus Eko; Azmi, Muhammad Fajar Ulil

doi:10.24269/ekuilibrium.v15i1.2363

Cited by 9 publications

(10 citation statements)

References 6 publications

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“…Allocation for government spending , both direct and indirect expenditure allocations, has not been able to significantly drive economic growth (Lantu, Koleangan, & Rotinsulu, 2019). Government spending greatly helps economic growth (Sujianto & Azmi, 2020;Wu, Tang, & Lin, 2010). The low benefits of economic growth for Malaysians are due to the inefficiency of government officials in managing government spending for public administration activities, serving business activities and managing spending in the education sector (Dinh Thanh, Hart, & Canh, 2020).…”

Section: Figure2 Proportion Of Central Government Expenditure In 2019mentioning

confidence: 99%

“…At its peak in 2019 as shown in Figure 1 , the APBN deficit ratio is at its lowest position and in 2020 the deficit increased significantly caused by global impact of the corona pandemic. The government has the authority to regulate the economy of a country through budgetary intervention on fiscal policy and government spending (Sujianto & Azmi, 2020). The amount of government revenue and expenditure is reflected in the State Budget (APBN) and Municipal Budget (APBD) documents which are intended for local governments (Anitasari & Soleh, 2015).…”

Section: Introductionmentioning

confidence: 99%

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The Effect of Government Expenditure on Economic Growth in Indonesia

Maulid

Bawono

Sudibyo

2021

EKU

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This study aims to examine and analyze the effect of economic growth classified as personnel expenditure, material expenditure, capital expenditure, interest payments, subsidies and social expenditure in Indonesia. The data in this study are time series data from 2005 to 2019. The hypothesis test uses the multiple linear regression method with SPSS 26. The results of testing government expenditure variables during the period 2005 to 2019 shows that components of central government expenditure include personnel, material, capital, interest payments, subsidies and social expenditure have a significant effect simultaneously on economic growth. There is a significant positive effect on the relationship between the variable personnel expenditure and material expenditure on economic growth. There is a significant negative effect on the relationship between the variable capital expenditure on economic growth. The other three variables, which include debt interest payments, subsidies and social expenditure, do not have a significant effect on economic growth.

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Section: Figure2 Proportion Of Central Government Expenditure In 2019mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The Effect of Government Expenditure on Economic Growth in Indonesia

Maulid

Bawono

Sudibyo

2021

EKU

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show abstract

“…If the value of the coefficient of determination approaches or reaches the number 1, it can be said that the independent variable as a variable that is needed in estimating the dependent variable. Conversely, if the value of the coefficient of determination approaches or reaches zero (0), it can be said that the independent variable is not the variable used in estimating the dependent variable (Sugiyono, 2018). In order to determine the interpretation of the value of the coefficient of determination can be seen in Table 2.…”

Section: Methodsmentioning

confidence: 99%

Economic Growth: Can be Influenced by Exports, Inflation, and Government Expenditure on ASEAN-7 Countries during the AFTA Period?

Simatupang,

Marselina

2023

JERSS

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The increase in the economy can be seen from the increase in export activities and government spending that have an impact on the increase in foreign exchange. The existence of inflation has an impact on the weakening of people's economic activities so that it has an impact on the weakening of the country's economy. However, inflation has a positive impact on a country's exports. The study analyzed the effect of exports, inflation and government expenditure on economic growth in ASEAN-7 countries from 2015 to 2019. Using Panel Data analysis method with RE model (Random Effect Model) as the best model used. The results of this study indicate a positive and significant relationship between exports and government expenditure on economic growth in ASEAN-7 countries, while inflation has a significant negative influence on economic growth in ASEAN-7 countries.

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“…2. Other independent variables used are the values of Gross Domestic Product (GDP) of Indonesia and trading partner countries which is the calculation basis of economic growth rate as the popular indicator of the macro performance of a country (Sujianto & Azmi, 2020). GDP expresses the size of Indonesia dan 40 trading partner countries' economy and is expected to positively correlate with the exports of Indonesian manufactured goods since it describes a country's production capacity, productivity, and consumption.…”

Section: Methodsmentioning

confidence: 99%

The Impact of Regional FTA on Export of Manufactured Goods: The Implementation of Gravity Model in Indonesia

Siahaan

Ariutama

2021

JESP

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Indonesian exports have not shown their best performance since Indonesian exports are still based on raw commodities, not manufactured commodities, causing Indonesia to experience a negative trade balance. Therefore, this study aims to investigate the impact of the six regional FTAs applied in Indonesia and related trade factors on Indonesian exports of manufactured goods with 40 partner countries using gravity model during 2002-2019 as a means of evaluation. The result indicates that the regional FTA has positive impact on Indonesian exports of manufactured goods. It also indicates that the regional FTA only causes trade creation effect. Furthermore, Gross Domestic Product (GDP) of two countries, economic distance, trade openness and the effective real exchange rate of partner countries significantly affect Indonesian exports of manufactured goods. Thus, it can be concluded that regional FTAs in both countries along with economic growth of Indonesia and partner countries, economic distance, trade openness and real effective exchange rate of partner countries are advantageous for Indonesian trade policy to increase the exports of manufactured goods.

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Associative Study on Government Spending, Inflation, Trade Balance, and Gross Domestic Product

Cited by 9 publications

References 6 publications

The Effect of Government Expenditure on Economic Growth in Indonesia

The Effect of Government Expenditure on Economic Growth in Indonesia

Economic Growth: Can be Influenced by Exports, Inflation, and Government Expenditure on ASEAN-7 Countries during the AFTA Period?

The Impact of Regional FTA on Export of Manufactured Goods: The Implementation of Gravity Model in Indonesia

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