KnE Social Sciences

ISSN: 2518-668X

The latest conference proceedings on humanities, arts and social sciences.

The Effect of GDP, FDI, and Inflation to Trade Balance in 12 APEC Countries

Published date:Jan 24 2024

Journal Title: KnE Social Sciences

Issue title: The 6th International Research Conference on Economics and Business (6th IRCEB)

Pages:668–679

DOI: 10.18502/kss.v9i4.15110

Authors:

Galih Aga Lumayunggalih1900010328@webmail.uad.ac.idDepartment of Economic Development, Faculty of Economics, Universitas Ahmad Dahlan

Firsty Ramadhona Amalia LubisDepartment of Economic Development, Faculty of Economics, Universitas Ahmad Dahlan

Nizaul Ngulum FadilahDepartment of Economic Development, Faculty of Economics, Universitas Ahmad Dahlan

Maman FaudziDepartment of Economic Development, Faculty of Economics, Universitas Ahmad Dahlan

Lestari SukarniatiDepartment of Economic Development, Faculty of Economics, Universitas Ahmad Dahlan

Abstract:

This research analyzes the factors that affect the trade balance in 12 APEC countries because trade balance is one of the important factors for economic growth. The level of prosperity and economy of a country can be measured by its active trading activities. This activity can be a source of income for countries. So, it can be said that the strength of a country’s economy is its trade. Through trade, a country can establish diplomatic relations with other countries. This research uses panel data model with trade balance as a dependent variable, and gross domestic product (GDP), foreign direct investment (FDI), and inflation as independent variables. This research uses data from 2011-2020. The result is that GDP does not have significance with the trade balance, FDI has a positive significance for trade balance, and inflation has a negative significance with trade balance.

Keywords: APEC, data panel, trade balance

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