IJRR

International Journal of Research and Review

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Research Paper

Year: 2022 | Month: January | Volume: 9 | Issue: 1 | Pages: 167-174

DOI: https://doi.org/10.52403/ijrr.20220122

Significance of Tourism Budget, Inflation, and Interest Rate on Economic Growth in Indonesia for the Year of 2011 – 2020

Zata Hasyyati

Department of Economics, Faculty of Social Science, Universitas Pembangunan Panca Budi Medan, Indonesia

ABSTRACT

This study is aimed to investigate the relationship of tourism budget, inflation, interest rate on economic growth in Indonesia in 2011 – 2020. Data was gathered from Central Bureau of Statistics (Badan Pusat Statistik/BPS) and Ministry of Finance (Kementerian Keuangan/Kemenkeu). The data were analyzed using the multiple regression analysis after fulfilling all of the classical assumption tests. It showed that the inflation and interest rate have significant positive impact while tourism budget has insignificant negative impact on economic growth. In this case, monetary policy tends to be efficiently implemented at the level of promoting growth. However, Indonesia is still early on hoping significant contribution of tourism sector.

Keywords: Tourism Budget, Inflation, Interest Rate, Economic Growth, GDP, Multiple Regression Analysis.

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