Analysis of the Influence of Investment, Inflation and Consumption on GDP in Indonesia in 2013-2021

English

Abstract

Economic development in a country has the goal of achieving social welfare, which is done with a high-growth economy. This is important because both of them have a mutually sustainable relationship between national and regional development which creates stable, strong and equitable economic growth for all parties. However, the country's economy was built not to be directed solely to economic growth. As for the calculation of economic growth itself, it can use one of the variables, namely the measurement of GDP growth. The purpose of this study is to determine the impact of investment, inflation and consumption on Indonesia’s GDP from 2013 to 2021. The data used in this study are time series data and secondary data are from Bank Indonesia, Indonesia Economic and Financial Statistics (SEKI), World Bank and scientific journals. The Ordinary Least Square (OLS) approach was used in this investigation. Investments have a long-term favorable impact on GDP, therefore investments play an important role in increasing the economic growth and production capacity of the country. Indonesia's GDP variable, on the other hand, is not considerably impacted by inflation that occurs within the nation. High inflation does not significantly affect economic growth. However, it is still important for the government to maintain price stability and control inflation so that it does not have a negative impact on the economy. Consumption and GDP variables exhibit a strong and positive correlation. An increase in consumption will contribute significantly to GDP growth.