The Effect of Export, Islamic Mutual Fund, and Labor Force on Economic Growth in Indonesia

Abstract

This study aims to determinethe effect of exports, islamic mutual funds, and the labor force on economic growth. This is quantitative research with associative approach. The data used were secondary data which was obtained through the official website of the Central Statistics Agency (CSA) and the Financial Services Authority (FSA). The study used multiple linear regression analysis with the Ordinary Least Square (OLS) method by the E-Views version 10 program. From the results obtained, it can be explained that exports had a significant positive effect on Indonesian's economic growth.Islamic mutual funds had a negative significant effect while the labor force had a positive significant effect the labor force on Indonesia's economic growth. In the F (simultaneous) test there was a simultaneous significant effect among exports, islamic mutual funds, and the labor force on Indonesia's economic growth. Adjusted R-squared = 0.863602. This showed that the independent variables are able to provide an explanation about 86.3% of the dependent variable. Meanwhile, 13.7% more wasexplained by other variables outside the model.

Impact of Export, Import, and Population on Economic Growth in Malaysia

“…The results of Table 4 on multiple regression indicate that exports have a negative effect on Malaysia's economic growth, while imports and population have a positive effect. The findings on EX support studies by Noor and Ramli [7] and Triyawan et al, [8] but contradict Bakari and Krit [3], Kogid et al, [4], Imsar et al, [5] and Abdullah et al, [6]. This result indicates that Malaysia has a trade deficit due to imports exceeding exports.…”

“…The majority of studies use GDP as a proxy for economic growth, including those by Kogid et al, [2], Bakari and Krit [3], Kogid et al, [4], Imsar et al, [5], Abdullah et al, [6], Noor and Ramli [7], Triyawan et al, [8], and Mahtta et al, [9]. However, the dependent variable of this study is economic growth proxied by the gross domestic product growth rate (GDPG) to gain a deeper understanding of the factors that influence economic growth in addition to GDP.…”

“…In previous studies, gross domestic product is a famous indicator to measure economic growth [2][3][4][5][6][7][8][9]. Moreover, based on Ali et al [10] and Thavarajah and Chin [11], the real gross domestic product became attention to measure the economic growth.…”

“…For example, a study from Acaravci and Ozturk [14] used quarterly data from 1994 to 2008 to consider ten transition European countries: Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic, and Slovenia. In addition, Imsar et al, [5] covered the country of Indonesia in their study for the year 2011 until 2020. These two studies indicate that export significantly contributes to economic growth, as evidenced by comparing Europe and Indonesia over different periods.…”

“…For example, Kogid et al, [2] and Humpage [15] examine the impact of imports on economic growth. While, Imsar et al, [5], Abdullah et al, [6] and Thavarajah and Chin [11] study the relationship between export and economic growth.…”