ANALYSIS OF THE EFFECT OF GOVERNMENT EFFECTIVENESS, POLITICAL STABILITY, AND INFLATION ON INDONESIA'S ECONOMIC GROWTH
DOI:
https://doi.org/10.65886/ijde.v1i3.37Keywords:
Government effectiveness, political stability, inflation, economic growth, multiple linear regressionAbstract
This study aims to analyze the effects of government effectiveness, political stability, and inflation on economic growth in Indonesia over time. Using a quantitative approach with multiple linear regression models, the study found that government effectiveness and inflation exert significant influence on economic growth, whereas political stability has no meaningful impact. This finding confirms the critical role of strong institutions and macroeconomic control in promoting development. However, increased government effectiveness is not always directly proportional to economic growth if it is not supported by productive policy direction. The analysis also shows that, while political stability is an essential factor in the long run, its influence is not yet apparent in this context. Overall, this study provides insights that governance effectiveness and price stability have a more decisive role in supporting sustainable economic growth in Indonesia.
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