Analysis Of The Influence Of Trade Openness And Foreign Direct Investment On Economic Growth (Case Study Of Asean-5 Country Members In 1998-2017)

Abstract

Nowdays, the phenomenon of economic openness is very much considered in bossting the country’s economy by in creasing national income.This research aims to analyze the effects of Trade Openness (TO) dan Foreign Direct Investment (FDI) on economic growth in 5 ASEAN founding countries or ASEAN-5, that is Indonesia, Malaysia, Philippines, Singapore, and Thailand which has the highest economic growth in the last 5 years or the period 1998-2017. This research method uses panel data-common effect. The result analiyze shows that: a) TO has a negative effect and not significant on economic growth, and b) FDI has a positive effect and significant on economic growth. c) basis simultan TO and FDI not effect on economic growth ASEAN-5. This research also discloses that TO not play important on economic growth and FDI play important on economic growth member countries ASEAN-5. The writer therefore recommends that should be done among them is that the state must review the basis of any economic policy, based on the Islamic Sharia provisions in regulating the country's economy. Especially related to economic growth, Trade Openness (TO) and Foreign Direct Investment (FDI).