THE INFLUENCE OF MACROECONOMIC FACTORS TOWARD GROSS DOMESTIC PRODUCT OF INDONESIA FOR PERIOD 1981 – 2015

Abstract

This research examines how macroeconomics influences GDP of Indonesia. Macroeconomic is important and the relationship with economic growth cannot be ignored. This research seeks to prove the significance influence of three variables representing macroeconomic factors which are FDI, Export, and Inflation toward Gross Domestic Product of Indonesia. This research has 35 observations of time series for period 1981-2015. Moreover, this research uses quantitative research with several analysis methods such as Descriptive analysis, Classical Assumption, Multiple Regression analysis, and Hypotheses testing. Based on the result, FDI, Export, and Inflation have significance influence toward GDP. Furthermore, the independent variables simultaneously contribute 90.33% influences toward GDP while the rest 9.67% is influenced by other factors outside this research.