PENGARUH PENGELUARAN PEMERINTAH DAN FOREIGN DIRECT INVESTMENT (FDI) TERHADAP PERTUMBUHAN EKONOMI INOONESIA PERIOOE 1990-2013

Abstract

Economic growth  is a necessary condition for development and better public welfare. According to the economic theory, economic growth is influenced by various factor, such as government expenditure  and FDI. This research applying qualitative and quantitive methods to know economic growth development and the influence of government expenditure and FDI to economic growth. Research findings,  qualitatively,   reveals  that   the  economic  growth development can be grouped in to 3 phase, namely "new order regime" phase, "crisis and recovery" phase, and "SBY- nomics" phase. Meanwhile, the quantitive analysis indicates that government expenditure has positive and significant impact on economic growth, so it is the right time for government to increase the government expenditure to public sector rather  than other spendings. Simultaneously, FDI variabel has positive and significant  influence on economic growth, the government, therefore, should make a policy which can stimulate the increase of FDI into Indonesia.