The Role of Economic Factors on the Economic Growth: Evidence from the Indonesian Economy

Abstract

Recently, extensive economic growth (EG) has become the foremost requirement all around the globe, and this aspect demands the researchers’ and regulators’ attention. Hence, the current research investigates the impact of economic factors such as exports, consumption, income inequality, government spending, investment, and unemployment on the EG in Indonesia. The researchers extracted the secondary data from the World Development Indicators (WDI) from 1981 to 2021. The researchers also applied the Dynamic Auto-regressive Distributed Lags (DARDL) to test the association between the variables. The outcomes exposed those exports, consumption, government spending, and investment have a positive linkage with EG in Indonesia. The results also uncovered that income inequality and unemployment have a negative linkage with EG in Indonesia. The research provides guidelines to the policymakers in making the policies regarding to achieve extensive EG using high exports, consumption, government spending, and investment