Determinants of Economic Growth in Developing Countries of G20 Members

DOI

10.2991/aebmr.k.201126.021How to use a DOI?

Keywords

economic growth, fdi, inflation, population, exchange rate

Abstract

This study purpose to analyze the determinants of economic growth in developing countries of G20 members, with variables (1) Economic Growth, (2) Foreign Direct Investment, (3) Inflation, (4) Total Population, and (5) Exchange Rates. The data in this study uses panel data from the 2013-2018, which consists of ten developing countries in G20 members, using linear regression and using the Random Effect Model (REM). The results shows that, (1) foreign direct investment has a positive and insignificant effect on the economic growth in developing countries of G20 members, this is caused by the lack of foreign direct investment into the country, which is caused by the inaccuracy of the government in regulations and policies for foreign Investment, (2) inflation has a negative and significant effect on the economic growth in developing countries of G20 members, this is caused by low inflation causing capital purchases to produce goods and services can be achieved, it will increases the production of goods and services and in the end will increases economic growth, (3) population has a positive and insignificant effect on the economic growth in developing countries of G20 members, this is caused by the large number of population who have not able to drive economic growth, because most of peoples do not have skills for work, labor who have skills will increases productivity and ultimately increases economic growth, (4) the exchange rate has a positive and significant effect on economic growth in developing countries of G20 members, this is caused by, if the exchange rate is appreciated then will increases the country’s foreign exchange reserves, if foreign exchange reserves increases, the export demand will increases, automatic production of goods and services also increases, and at the end result of economic growth will also increases.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - M. Afdal. Samsuddin
AU  - Syamsul Amar
PY  - 2020
DA  - 2020/11/27
TI  - Determinants of Economic Growth in Developing Countries of G20 Members
BT  - Proceedings of the 5th Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA-5 2020)
PB  - Atlantis Press
SP  - 177
EP  - 183
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201126.021
DO  - 10.2991/aebmr.k.201126.021
ID  - Samsuddin2020
ER  -