DETERMINANTS OF DEVELOPING COUNTRIES ECONOMIC GROWTH IN ASIA AND AFRICA
Written by : Muammar Kadafi
Student ID : 1609200010010
1st Supervisor : Prof. Dr. Raja Masbar, M.Sc.
2nd Supervisor: Dr. Taufiq C. Dawood, S.E., M.Ec.,Dev.
This research examines the effect of exports, exchange rates, foreign direct investment, bank credit, government spending, and the human development index on economic growth in developing countries in Asia and Africa using the panel least squares method. The data used in this research is secondary data using an unbalance panel data approach, in the Asia there are 28 countries with a total of 1,360 observations, and the Africa with 34 countries with a total of 2,173 observations. The results of this research showed that the developing countries in Asia based on exports, exchange rates, foreign direct investment, bank credit, government spending, and the human development index variables have a positive and significant effect on economic growth. The results also showed that the developing countries in Africa with exports, exchange rates, and government spending variables have a positive and significant effect, the human development index variable has a negative and significant effect, while the foreign direct investment and bank credit variables have a positive but not significant effect on developing countries economic growth Africa.Thus, in third-world countries, stronger macroeconomic fundamentals are needed against global economic turmoil so that economic growth can grow rapidly through economic development plans in each country.
Keywords: Economic Growth, Exports, Exchange Rates, Foreign Direct Investment, Bank Credit, Government Expenditures, Human Development Index, and Developing Countries in Asia and Africa.