The Contribution Of Open Economy To Economic Growth in west Sumatera.

I'ACULTY OF ECONODqCS ANDALAS

!\IITRSITV

TIIESIS

TITE CO\"TRIBUTION OF OPEN ECONOMY TO ECONOMIC GROWTE IN \4DST STJMA1ERA

BY:

CERT _{CINTIA ELVA NAZMAR}

06151 012

The Stud..t Of Bachetor _{Degrde Or Econonic}

Dcp.rtn€nt

m6it

l!

Subnidat

t"

poniat

tugl!@nt

_OJ

Ih.

Requn

n"h!

tot

n.

Buh.tor

D.Arc. Froh

Andrl6

_UriveBitu

CERI

(]I\TIA

Examl.rfon

Jadux.y.

tlri'2010

e)

Cradilalc

srhdard

verl

Salnhcrion h)

GIA

3,01

i) Lcngth olsrudy _{Pe.od .l rerrs ard}

l

nonths,

PaEnli addre$ Jorons Bukik (bmbar S uak. Kenasa.ian

Pesonal Idcnily a) Dare

ol Br

h

Buk,l

Combak

Snlaf

name

Elva.ano

Naznar and

Husorltr

dl

D.pa.r'ncnl

L.om,n. c)

Srud€n No

Me' l8'r' rs88 b) Pa.cds'

cl

Flculry:

hconomics

06

l5l 0ll

l1

Drl.

of

I hcas LranLn.trion rnJ 'the Contribuiion OlOp€n Econony

'Ihesis

br:Ceriairli,

Elvr\r7nrr

_Th€sh

'ro _{fcononic Cronrh}

Of$.{

_Strm,rem

l

\,lr

n!,r:

Ir0f.Dr,IL

!trfruddin Llrimi.

sEj

The Nodero economl can nor separaled $nh opcn ccoiofric srsLems, open econom! aho calL.d

rntenrlional lrade thal xre always

conicctd

wilh

.rpon

and mport

rctiMN

lI r

thcor!

ol

cconoml.s

acrivily..rFn

and in!.smcdr h!5 poslr\e Elaxonsbips

{it[

cconofric

gro\

h.

rn!€{mdnl undftcriomlly

crsc

rhe cap

rl

goods impon that arc sieniticaml!.ause €cononnc

gro$1h Thrs research

s

a srudr

abou

he conlribution oaotcn c..nomy ro econonnc Foslh or wesl SumatDra lhe analizes usins OLS (Ordirarv LcasL Squarq) ol lrne se.es dara

ol

l98l

to

2009 Thc \aribrl.s lscs hcrc

ar

G.$

Rcgional D.n€s!,ca Pruduch a\ dependenl ra.ablc and

E1lod,

lnll.d

(in.ludi.g .apnal go.ds i,nNd), l.vest rent as nrdependent

laiablcs

llas.d

oi

.n

ncll

resulr, sriler suggesllhlt eypon and caprral goods rmpon has blg.onl.ibulLon ro the

Gro$

Regionll Donrestrcs

trorlucls

FunhemoE.

capiul

goods lmpon

lho

has poitive rel.liondrips lo nr!estme.l rn the case

ofwei

Sumatcra

(orqords: Irrmaiion:J tade e.o.om'c _er$l1i.

ordir4

lea{ squi(. co lnbulnrn

llead of Lrepanment: ProlDrl:l l.i^Mp Ian Sl]M E. DEA

ln!

Tlrd r

' \J r."ier.

'r\. J..l\,lf.uo'.o

\'dl.r

.

'r

rot

oblarned thc ,\lLnmus Rcsulralion Nunber

SE, MA

The olficer in charec oflracuLlj_ r^ndalas

Univer$ty ALurnnus ReJjln.aitun No

CIIAPT'RI

Cbbal econonric relrrn)nships in rhe

rorld

tuc sray in rltr purtosc ol'

qelldc. _To relch Lhis purposc caoh courxry !1,

b

hc thc bc$ in gnibal mdrker

rherearcnan!thcory.xta dcdb)rrhenNeBoreconomic,.llolthcrhdor

arc cnd in thc rmson that howro tu1filln.ssccity 'n

tbc thcor] we Lnow opcn

4onomic sysreors atul closed cconomic slslem. bolh

olllrm

have JiJlereDl

rcle 10 ,tach welllrc

ol

rhcn counlry Closcd ccononric syslctus

uo

thc

.c.non!.

rvilh.Lt lorcien tadc.

d'cl

ato try ro

lirlfill

all

ol

dre nesecil] in {hcn counay. sonclincs $is thcory olcloscdecon.nic s}{ensare sepamtcd

''.,11.o'ub

" i n.rr\'..!r

o ,..'i.opc' i,,.ri. Jr"

is thc Lheroy thal

rlhw

the

'chri.ships

berseo

coDlrics..d

no

rjde

bari.6.

lhcrc a.c mant bcnncn*.lthis- bur lhe problenr aho bie,

cspcciallr-lor thc cucncy laluc.

'Jhe _{ol]en econoory}

!l$

_{called inlemalional lradc. nod.m econonomy}

lrddy

.&1

sl?rarcd

lron

intumartu.al rade, we .an

t

aloitl inrcriarional

t!de,

becouse _oeotle neens

b

tullill the;

oessecily and

lle

bcst rcdson

.l

*hypcopLcdo iircmationalrradc is (. nsing wel

lift.

lnrernarional tmdc hclps

N

lo

lLrllll ness{il}

dnd consume nror. than

{har

}t.e

_ttuduce. rise

wellirc but also can rvo*r cc.ndmics in a country. bccousc cach olcoundcJ

lishr lo bc rhc bcsr

i

th. aond dErkei Sonelimes, dereloped coMtrics

m

Fowerful lhtur devcloping

dd

Lud.r d€leniped c.unnies in the slobal mrkct.

Accordn8 ro Cdsholnr

{l98l)

or his

b&,llht

tricipte! OJ Ec.,onti.s,

The pure theorr_ ol inremalional

tldc

has micrceconomic and mrcroe.dnomic imflicdrions lLs nicroec.nonic rsnecrsreler ro lhe interaction ofdcntud drd

suppll

in

individull

rarkds.

As in domcslic markcrs, rrade esrablishes an

equilibnum

pnamdqumtit)

for _{lradcd eoods} md services \\ften

arc lnrled lhrou!h lmde. equilibriun oc.ur\

al

the intcscctioi

ol

_Blobal

lemand _{and slobal supply.}

'lhe _{demand and supply beL$€en counhics w€ cdlldJ expon aDd inrpon}

acriviq, extonmcm\ when you _{trade Aoods turd} sciriccs oul ol vour counlry. ard inpod rncds shcn thc forcisn pmducr cnror 10 ourcounlrl. A counrv

trr

to bc the best each orlEr in the mdlct. bc.ousc

n\

n.t e{s} to challcnec

ir

rhe Lvorld n,arker, qualiry rnd price arc somc

rcsor b!

the consumers 10

acccpt our producl. Fvery

gorcmenl

in lhe wond al{ats suppn an elJbn ni ordcr to nicrcasc expod

{h

inrtort, becousc n counlq will oct tradc slrplus Fhcn cxpon moE th.n impo.r. yicc !c6a wh.o imf)on is gGater

thd

cxpo

orlns

trade delicit Jo. a counrry. We kno{ balan.e oll.adc. $hich

tnosr

ns

complnsr

bet*ecn cxpo,r

lnd

iornon. Ralarcc

ol

lradc hopclilly

al*lys

p.silivc. bccousc

it

sill

bdne us

r.

hc rdde surplus.

Lmde

plls

hrnrg

In

open €conomic counlry

ol

inlemalio.al tradc.

cx0!n

hls

lhe

imponanr rcle ro acceleralcd donrcsric gro$dl Lxp.n .an bc nse econoDic

stuwlh

ir

onc si,lc.

bd

also can wo6e the oLheN sidc (Sriafnddin Kdinri,

1986). Indonesia as one countr) thal hold oFcn economy can l sepaFlcd aron

rhe posirive

od

neAllire ellecr

ol

inlenrarioral ccon.hy. becouse most

ol

lnd.ncsidn cdonomy

rro

dependenl

to

lntenntional

lndc, esrucilll]

aor

natural resouices dar de exp.n

b

o$c6

countries

ol

dcstidtions Besides

rllal cxpon will hclp thk country to rhc tho uscljrl orcapitll _{aoods irDpod,} in Lleside to ftlch good econonric coopeftliors.

Td nsc

welift

in

!

.ou.try, cconomic dcvclopmcnt k signilicmr Jircror

h.tu

lhc

ncw inl.rcsr

in

rhc Jctcminlnls

ol

economic dcvelopfrenr

ht\

rcieritcd thc dcbalc on op.nncs md growth. Thc

f$v e$slh

$corics sussesl

thal tEde policy afects long run _Sroslh dnught ils i.rprcr on lehnololycal changr Opu.nrs {d

trdc

_{Fovides 4cess ro} inponcd inpurs. which €nrbodv ndw rdchdolost, idcEases

lhe

efecrive size

ol

thc

ndkct

pioducins

roducc6.

which raiscs

thc

rdtums 10 innovation and affecls coutrics

CHAPTER

!'I

CONCI,IJSSION AND PECO

5.

L

According lo the resdl of llis nsemh,

kiter

conclndc thal:

Inlemtioml

t.de

sisnin@dy csuse 4onomic groq$. Acording

b

$€

Esulr

of

ftis

Fseach €xpon

dd

inlon

haae bis conr.ibution

b

tne

glov1h

of@nooy

_{{Cms Rqioml} Don6tics Poduct),

eEsiolly

in the

cde

ol

Vesl

SMaled

The elTect

of

intemtio.al

trade

lo

Cbss

Regional Donestics Pnducl hol

juL

&om export setor, but

.ho

eom .dpibl eood

irmn.

har

nudjElrl)

nse

*onor

r. _er os1ll

Tle

_src$th

of

inv6tnen!

_{€apilal so.ds import,} and export logethd

siglinmlly

ou*

dr

lelcl ofcmss Reeion _{lDom6lics lbducls.} Usins the dab

of l98l

lo 2009 exporl

oue

e@nooic g.odh aboul 23 % in

p€Eenrase. 17,? %

caw

the _src$th ofcapilal _eoods inpon. B$ides lhal copilal _soods imlon ontribure 29,7 % of Investnent,

Economic cnsis al 1998 cauins tlrce faclor of gbv1n (expod,

€pitll

soods isporl. md inv€shrent), it is

dimtly

sue

@nonic grcfih. The elidoce shoes dal Cro$ Regiorel

Don6lis

tuucl

of West Smatem t@ f01l

!@h frinls

lelel ol GDP.

investue als

fall

dom

whcr*

n

noi roo fall. b€side lhal expon also dom. Bur. aldought expon lall

doq,

the baldce

ol

lsde of Vest

SlmteE

stiu in tno positive side. Mens dLL We{ cmar.m

h^e

_Cood

ope"non

ro

fre

&onomrc

ririi.

Tt.

belmcc of

tzdc

of W€sl SunDtea shows goorl c@p€Ftiom oner

6ononics cdsis

f&ing

by Indonesia

al

199?. Bale@ of

hde

th.t

is knoM

d

the

onpaien

beh@n the

dounl

of export md impott in d couFy

shos

th€ positive relatioships in thc yed of2003

hil

2009 in

the Vest Swalen aonoDy.

west Smalera

qp.n b ndy

cobEies of destimtion. this a.livity

dc

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of

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