Analysis of Factors Affecting Indonesia’ External Debt

Selvia Inca Devi, Fitrawaty, Eko Wahyu Nugrahadi

2018

Abstract

Indonesia's external debt increases in the year 1998-2017 has been a huge debt burden for the country of Indonesia. This aims of this study is to analyze the influence of gross domestic product (GDP), the budget deficit, exchange rate, inflation and interest rates on Indonesia’a external debt. Analysis of the data in this study was using an error correction model (ECM). The results showed that in the short-term GDP, inflation, and interest rates have a positive influence on Indonesia's external debt. While the budget deficit ofand the exchange rate had a negative effect on Indonesia's external debt. In the long-term GDP, inflation have a positive influence on Indonesia's external debt. While budget deficits, exchange rates and interest rates have a negative effect on Indonesia's external debt. The coefficient of determination of 94.4 percent indicated that the GDP, budget deficit, exchange rate, inflation and interest rates have a very big influence on Indonesia’ external debts.

Paper Citation

in Harvard Style

Devi S., Fitrawaty. and Nugrahadi E. (2018). Analysis of Factors Affecting Indonesia’ External Debt.In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES, ISBN 978-989-758-432-9, pages 545-553. DOI: 10.5220/0009505905450553

in Bibtex Style

@conference{unicees18,
author={Selvia Inca Devi and Fitrawaty and Eko Wahyu Nugrahadi},
title={Analysis of Factors Affecting Indonesia’ External Debt},
booktitle={Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,},
year={2018},
pages={545-553},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009505905450553},
isbn={978-989-758-432-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,
TI - Analysis of Factors Affecting Indonesia’ External Debt
SN - 978-989-758-432-9
AU - Devi S.
AU - Fitrawaty.
AU - Nugrahadi E.
PY - 2018
SP - 545
EP - 553
DO - 10.5220/0009505905450553