Relationship between GDP, Foreign Direct Investment and Export Volume: Evidence from Indonesia

Abstract

Using time-series and co-integration test from 1981 to 2013, this manuscript examines the long-run relations between FDI, GDP and export volume of Indonesia. The impact of Indonesian export volume and FDI on Indonesian GDP were measured in this article, it has been found that export volume and FDI have significant influence on economic growth of Indonesia. In addition, according to Johansen cointegration test, there is long-run relationship between GDP, FDI and export volume of Indonesia. The empirical findings are consistent with other academic articles.