The Impact of Foreign Trade Policy on Economic Growth of Aceh Province, Indonesia

Resmi Fitriami; Raja Masbar; Miksalmina Miksalmina

doi:10.56225/ijfeb.v1i2.26

Authors

Resmi Fitriami Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia
Raja Masbar Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia
Miksalmina Miksalmina Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

DOI:

https://doi.org/10.56225/ijfeb.v1i2.26

Keywords:

multiple linear regression, foreign trade, economic growth, Aceh province

Abstract

This study analyzes the influence of foreign trade in Aceh province along with inflation, exchange rate, investment, and labor factors on the economic growth rate in Aceh Province. The variables that represent foreign trade are exports and imports. In addition, this study also used a dummy variable in the form of foreign trade policy in the form of reactivation of the Krueng Gukueh port. The analytical model used in this study is multiple linear regression. This analysis model can identify how much influence each independent variable has on the dependent variable to formulate various policy steps to increase the economic growth rate. The results found in this study are exports, imports, and investment have a positive and significant effect on the rate of economic growth of Aceh province. Meanwhile, the factors that have a negative and significant influence on the economic growth rate of Aceh province are the exchange rate and labor. Inflation and foreign trade policies of Aceh province have not had a significant influence on the economic growth rate of Aceh province.

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