Influence of FDI, Domestic Investment, and Government Debt to Economic Growth in Three Countries of ASEAN

ABSTRACT : Economic growth is one important indicator that can be used to analyze economic developmentsthat occur in a country. The success rate of a country can be seen through economic growth. Developingcountries generally need a large enough budget to be able to encourage and accelerate economic growth. Thishas led to the importance of both foreign and domestic investment and government debt in order to increasegovernment capital to boost the country’s economic growth. The purpose of this study was to determine theeffect of FDI, domestic investment, and government debt simultaneously and partially on economic growth inIndonesia, Malaysia, and Thailand. This study uses 57 secondary data for 19 years (2000-2018) with analyticaltechniques using multiple linear regression equipped with panel data analysis methods and classical assumptiontests.Test analysis results in this study indicate that FDI, domestic investment, and government debtsimultaneously have a significant effect on economic growth in the three ASEAN countries. FDI, domesticinvestment, and government debt partially have a positive and significant effect on economic growth in the threeASEAN countries

Keywords – FDI, domestic investment, government debt and economic growth