DAMPAK FOREIGN DIRECT INVESTMENT (FDI) TERHADAP PERTUMBUHAN EKONOMI INDONESIA TAHUN 1981 - 2017

Various policies have been taken by the government in the hope that economic growth will improve. The existence of foreign investment is expected to have a positive impact on the economy, in addition to encouraging economic growth, the government takes a role with fiscal policy through government spending. This study aims to determine the impact of macroeconomic variables, namely: Foreign Direct Investment (FDI), Import, Export and the Government Final Consumption Expenditure (GFCE) variable on economic growth in Indonesia. This research uses quantitative methods. The Time Series data analysis technique uses the Error Correction Model method which is assisted by the Eviews 9 program. The data used in this study are data in Indonesia and annual data in the 1981-2017 period. The research data is in the form of secondary data obtained from the World Bank. The results of this study indicate that FDI in the long or short term has a positive effect on economic growth. Import variables have a negative effect on economic growth. Meanwhile, the Export Variable only affects the long term. The Government Final Consumption Expenditure variable has no effect on economic growth in Indonesia