FACTORS THAT INFLUENCE GDP GROWTH RATE IN SIX ASIA’S DELEVOPING COUNTRIES FROM 2007 TO 2011

Abstract

The researcher would like to present a research regarding the macroeconomic study of growth specifically about the factors or indicators that may influence the economic growth. Gross Domestic Product (GDP) growth rate is known as the best concept/ tool to measure the economic growth of a country. Therefore, the researcher attempts to analyze some factors that may influence the GDP growth rate of a country. Targets of this research would be focus on six Asia’s developing countries involved Indonesia, Malaysia, Thailand, Vietnam, Philippines, and China in period of 2007 until 2011. Researcher set the independent variables based on common problems which always become obstacles of economic growth in Asia’s developing countries, involved inflation rate and unemployment rate. Other variables that may impact from these volatility variables are interest rate and exchange rate. So, this research would be aimed to prove whether inflation rate, interest rate, exchange rate, and unemployment rate together toward and partially have significant influence to the GDP growth rate. The analysis of data in this research used multiple regression analysis by using statistical software to identify the influence of the independent variables to the dependent variable. The data also has been tested with the four classical assumptions and it is founded that the all of data in this research can satisfied the four classical assumptions. Otherwise, the empirical evidence of this research indicates that inflation rate, interest rate, exchange rate, and unemployment rate together toward have significant influence to the GDP growth rate, but partially only unemployment rate that doesn’t have significant influence to the GDP growth rate.