Trade openness boosts economic growth in Indonesian provinces, study finds.
Trade openness has a positive impact on economic growth in Indonesian provinces. By analyzing data from 2010 to 2017, researchers found that provinces with more open trade policies experienced better economic growth. This was shown through a panel regression model that considered variables like investment and labor. However, the overall impact is limited due to the relatively low level of trade openness in Indonesia. Foreign investment and labor controls were found to have a negative effect on economic growth.