The Determinants of Exports of Leading Commodities in Encouraging Economic Growth in South Sulawesi Province

Abstract

The purpose of this study was to analyze the effect of investment on exports, competitiveness of commodities, bilateral agreements on exports, market penetration of commodities, and the exchange rate on exports to encourage economic growth in South Sulawesi Province. Using a quantitative method with a descriptive analysis approach, carried out by the Province of South Sulawesi in 2021. The data used in this study is secondary, which is time series data for the last 20 years. Secondary data for this study were obtained from a variety of sources, including the World Bank, Uncomradely, and the BPS statistical portal, among others. The data analysis model uses the Revealed Comparative Advantage Index (RCA), the Index of Export Market Penetration (IEMP), and Two Stage Least Square (2SLS). The results of this study are: 1) investment has no significant effect on exports in encouraging economic growth; 2) competitiveness has a significant negative effect on exports in encouraging economic growth; 3) bilateral agreements do not significantly affect exports in encouraging economic growth; 4) market penetration has a significant effect on exports in encouraging economic growth; and 5) the exchange rate has a significant effect on exports in encouraging economic growth.