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Exploring Key Drivers of Economic Growth in Indonesia
Abstract
This study uses the Autoregressive Distributed Lag (ARDL) model technique to examine the factors impacting economic development in Indonesia between 1986 and 2023. The results show that the Menoter policy significantly hinders economic growth over the short and long terms. On the other hand, inflation significantly boosts economic growth throughout both periods. Furthermore, both in the short and long terms, financial development has a strong and favorable impact on economic growth. In a similar vein, exports have significantly boosted economic growth over both time periods. These findings emphasize the significance of strategic policymaking and draw attention to outside variables that significantly affect Indonesia's economic growth trajectory.
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DOI: https://doi.org/10.20961/bfde.v6i2.106057
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