Title : Factors Affecting Exports on the Island of Sumatra
Name : Ervina
NPM : 1801101010067
Faculty /Department : Economics and Business / Development Economics
Supervisor : Dr. Taufiq C. Dawood, S.E., M.Ec. Dev
Concentration : International Economics
The relationship of interdependence and competition between countries such as international trade will continue to occur with globalization. Export is an activity in the form of purchasing goods and or services by one country to another. This study aims to analyze the factors that influence exports on the Indonesian island of Sumatra. The type of research used is descriptive quantitative research with panel data regression method and chooses a random effects model approach (Random Effect Model). The data used is secondary data, which consists of annual data sourced from the Central Statistics Agency (BPS) and the World Bank during the 2009-2020 period. The results of this study indicate that each variable HDI and the provincial minimum wage have a positive and significant effect on exports. Then, each of the living cost and poverty variables have negative and significant effect on exports in the province of Sumatra in the 2009-2020 period. The government is expected to be able to take targeted policy steps in order to improve the quality and value of exports because Indonesia's natural resources have the potential to become the center of national economic growth.
Keywords: Exports, Human Development Index, Living Cost, Poverty, Minimum Wage