Globalization and its Impact on Indonesia's National Income

Authors

  • Niken Aulia Septiana Faculty of Economics and Business, University of Jember
  • Iven Egi Fitriana Faculty of Economics and Business, University of Jember
  • Egy Dwiqi Ranaa Putri Faculty of Economics and Business, University of Jember
  • Ali Marwan Hamid Faculty of Economics and Business, University of Jember

Keywords:

Economic Globalization, Indonesia‘s National Income, Panel Data Regression, Trade And Financial Openness.

Abstract

This study examines the impact of economic globalization on Indonesia's national income. National income is the sum of value added generated by all factors of production owned by a country in a 2000 to 2022 period. Secondary data from various sources, such as BPS and BI, are used for analysis. Quantitative method with panel data regression is used as an analytical tool. The results show that economic globalization has a positive effect on Indonesia's national income, but it also poses challenges. One of these challenges is trade openness, which has a negative effect. In contrast, financial openness has a positive effect. Therefore, Indonesia must improve the competitiveness of domestic products and anticipate the risk of foreign capital flows. This research is useful for the development of economics and government policy.

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Published

2023-04-04

Issue

Vol. 9 No. 1 (2023): Tamansiswa Accounting Journal International

Section

Articles