Business, Management and Accounting
2 years ago

Economic growth drives investment in Indonesia, savings have no impact.

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Journal of Malikussaleh Public Economics
INFLUENCE OF SAVING AND ECONOMIC GROWTH ON INVESTMENT IN INDONESIA THE PERIOD OF 1990-2019
Hijri Juliansyah, Suprianti Suprianti, Fanny Nailufar

Paper Summary

The study analyzed the impact of savings and economic growth on investment in Indonesia from 1990 to 2019. Using the VECM model, the researchers found that savings did not affect investment in both the short and long term. In the short term, economic growth had no impact on investment, but in the long term, it had a positive and significant effect on investment in Indonesia.

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