Work

Associative Study on Government Spending, Inflation, Trade Balance, and Gross Domestic Product

Year: 2020

Type: article

Abstract: Specifically, this study aims to examine the effect of macroeconomic indicators namely government spending, inflation and trade balance on PDB. The observation period from 1981-2017 is based on International Monetary Fund (IMF) documentation. Data analysis using the Error Correction Model (ECM). The results of the study: (1) in the short term and long term government spending significantly influence PDB; (2) in the short-run and long-run inflation affects PDB in the opposite way; (3) in the short term PDB is not affected by the trade balance, whereas in the long run the trade balance variable also has no effect on PDB with a negative slope and (4) the results of simultaneous tests of government expenditure, inflation, and the trade balance affect PDB.

Source: Ekuilibrium Jurnal Ilmiah Bidang Ilmu Ekonomi

DOI: 10.24269/ekuilibrium.v15i1.2020.pp27-37

Authors: Agus Eko Sujianto, Muhammad Fajar Ulil Azmi

Institution: Universitas Islam Negeri Sayyid Ali Rahmatullah Tulungagung

Language: English

Topic: Monetary Policy and Economic Impact

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $131

Funder: Kementerian Riset Teknologi Dan Pendidikan Tinggi Republik Indonesia