Impact of International Trade on Domestic Production: A Study of Indonesia's Economy

Abstract

This study aims to determine the extent to which international trade influences domestic production during the period of 2011-2015. Economic growth reflects the increase in the ability of an economy to produce goods and services. In this context, economic growth more often refers to quantitative changes measured using Gross Domestic Product (GDP) data or per capita income. The dependent variable in this study is economic growth, while the independent variables include exports and imports. This research employs a quantitative method using Multiple Linear Regression Analysis with the SPSS program. Based on the calculation results, it is found that there is a positive influence of exports on Indonesia's economic growth, while imports have a negative impact.