The Impact of Gross Domestic Products (GDP), US Dollar Exchange Rates and Money Supply on Indonesian Salt Imports From 2003 To 2022

Abstract

International trade is an important aspect of a country's economy. International trade is the exchange of goods, services, or other factors of production across national borders. One example of international trade is exports and imports. Export and import activities have a close relationship with demand and supply. In this study, we will examine one of the important aspects of international trade, namely imports. Indonesia, as a country that has a wide coastline and a large water area, still needs to import salt from other countries to meet the salt needs in Indonesia itself. Therefore, research will be conducted on salt imports in Indonesia as influenced by Gross Domestic Product, US Dollar Exchange Rate, and Money Supply. In this study, there is a period of twenty years, from 2003 to 2022. The number of observations in this study is eighty because there are four variables with a research data period of twenty years. The objectives of this study are 1) to analyze the effect of GDP, the US Dollar Exchange Rate, and the Amount of Money in Circulation simultaneously on Salt imports in Indonesia in 2003–2022, 2) to analyze the effect of GDP, the US Dollar Exchange Rate, and the Amount of Money in Circulation partially on Salt imports in Indonesia in 2003–2022, and 3) to find out the variables that have the most dominant influence on Salt Imports in Indonesia in 2003–2022. The results of this study show that GDP and the amount of money in circulation have a positive effect on salt imports in Indonesia in 2003–2022, and the US dollar exchange rate has a negative effect on salt imports in Indonesia. Gross Domestic Product has the most dominant influence on the Salt Import variable, among other variables.