Abstract
This study aims to determine the effect of Foreign Debt (X1) and Net Exports (X2) which describe exports and imports on the movement of the Rupiah exchange rate (IDR) against the US Dollar (USD) (Y1) and economic growth (Y2) in Indonesia throughout 1988-2019. This study uses multiple linear regression analysis using path analysis to determine the direct or indirect effect. The results showed that simultaneously, all dependent variables had a significant effect on the exchange rate (Y1) and economic growth (Y2). While partially, Foreign Debt (X1) and Net Exports (X2) have a positive and significant effect on the Exchange Rate (Y2). Foreign Debt (X1) has a positive and significant effect on Economic Growth (Y2), Net Exports (X2) have a positive and no significant effect on Economic Growth (Y2), and the Exchange Rate (Y1) has a significant and negative effect on Economic Growth (Y2). Based on path analysis, Foreign Debt (X1) and Net Exports (X2) show a stronger direct effect on Economic Growth (Y2), compared to the indirect effect through the exchange rate mediating variable (Y1).
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Multidisciplinary Research and Analysis
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
