The Nexus of Export, FDI, Financial Development and Economic Growth in North Sumatra, Indonesia

This study investigated the relationship between exports, foreign direct investment (FDI), financial development and economic growth in North Sumatra, Indonesia. Using autoregressive distributed lag (ARDL) bound test to cointegration, this confirms pattern of relationships growth, FDI sector as follows: (i) does not contribute economy Sumatra because it affect vice versa, (ii) causality exports is one way a growth-led export hypothesis (GLEH), (iii) follows finance-led /supply-leading hypothesis. These findings suggest that local governments should pay more attention development's crucial role by facilitating expand banking network support rural credit banks.