The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia

This study aimed to scrutinize the impact of financial development, energy consumption, industrialization, and trade openness on economic growth in Indonesia over period 1984–2018. To do so, employed autoregressive distributed lag (ARDL) model estimate long-run short-run nexus among variables. Furthermore, fully modified ordinary least squares (FMOLS), dynamic (DOLS), canonical cointegrating regression (CCR) were used for a more robust examination empirical findings. The result cointegration confirms presence Findings from ARDL indicate that development (measured by domestic credit) positively influence long run. However, money supply) demonstrate negative effect growth. positive explains these variables stimulating Indonesia. error correction term indicates 68% annual adjustment any deviation previous period’s equilibrium These findings provide strong testimony industrialization are key sustained