Investigation Of The Role Of Government And Private In The Economy In 6 Countries In Southeast Asia

English

Abstract

The aim of this study is to investigate 6 countries in Southeast Asia on a macro basis and investigate country by country to provide a clear picture of the impact of government and private economic activity on economic growth. Using secondary data in the form of panel data from the world bank, this study focuses on six Southeast Asian nations: Indonesia, Malaysia, Thailand, the Philippines, Cambodia, and Laos over the 2000–2020 research period. The Least Square Panel (PLS) approach is employed in this investigation. We found that consumption and government spending has had a significant positive impact in Indonesia, Malaysia, Thailand, the Philippines, Cambodia, and Laos. But only Indonesia and Cambodia are positively significantly influenced by economic development activities by the government. However, Malaysia, Thailand, the Philippines, and Laos are more influenced by private sector activities which are driven by government activities in developing the economy. This shows that the government's role in encouraging economic growth through government spending is important in the economies of Southeast Asia, especially the 6 countries that are the focus of this research.