TY - JOUR ID - 66642 TI - An Analysis of the Effect of Consumption Spending and Investment on Indonesia’s Economic Growth JO - Iranian Economic Review JA - IER LA - en SN - 1026-6542 AU - Rafiy, Muhammad AU - Adam, Pasrun AU - Bachmid, Gamsir AU - Saenong, Zainuddin AD - Department of Economics, Faculty of Economics and Business, Universitas Halu Oleo, Kendari, Indonesia AD - Department of Mathematics, Faculty of Math and Science, Universitas Halu Oleu, Kendari, Indonesia AD - Department of Economics, Faculty of Economics and Business, Universitas Halu Oleo, Kendari 93232, Indonesia Y1 - 2018 PY - 2018 VL - 22 IS - 3 SP - 753 EP - 766 KW - Keywords: Consumption Spending KW - Investment KW - economic growth KW - ARDL Model. JEL Classification: C13 KW - E210 KW - H31 KW - O047 DO - 10.22059/ier.2018.66642 N2 - This study aims to examine the effect of investment and consumption spending on Indonesia’s economic growth. The data used is the quarterly time series data from the first quarter of year 2003 to the fourth quarter of year 2013, comprising consumption spending, investment and economic growth. For the purpose of analysis, the autoregressive distributed lag (ARDL) model is used. The result of the study reveals that there are long-run and short-run effects of consumption spending on economic growth. Meanwhile, the effect of investment on economic growth is not significant. The study also reveals that the increase in government spending on economic growth is 1.88% if the consumption spending rises by 1%.   UR - https://ier.ut.ac.ir/article_66642.html L1 - https://ier.ut.ac.ir/article_66642_a16736ccfcbd9c68d1a2c1f27ae58ba5.pdf ER -