PEER REVIEW JURNAL ILMIAH: Associative Study on Government Spending, Inflation, Trade Balance, and Gross Domestic Product

AGUS EKO SUJIANTO, 197108072005011003 and MUHAMMAD FAJAR ULIL AZMI, 17402153525 (2020) PEER REVIEW JURNAL ILMIAH: Associative Study on Government Spending, Inflation, Trade Balance, and Gross Domestic Product. Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi, 15 (1). pp. 27-37. ISSN 1858-165X (P); 2528-7672 (E)

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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.

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