THE FACTORS INFLUENCING ECONOMIC GROWTH IN INDONESIA PERIOD 1981-2014 ERROR CORRECTION MODEL APPROACH
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This study aims to analyze the factors influencing economic growth in Indonesia. The study employed the quantitative approach by using secondary data from 1981 to 2014. Analysis tool that is used in this study is Error Correction Model (ECM). Variables that are used namely Foreign Direct Investment (FDI), Export, Infrastructure (Road Length), and Inflation Rate, in which economic growth represented by Gross Domestic Product (GDP). The result of this study indicates that Foreign Direct Investment (FDI) and export have positive and significant impact in short and long run. Meanwhile, both in short and long run, the inflation rate has negative and significant impact. The different result shows by infrastructure (Road Length) that has negative and insignificant relationship on economic growth in Indonesia, both in short and long run.