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

m6it l! Subnidat t"

poniat

Dcp.rtn€nt

tugl!@nt OJ Ih. Requn n"h! tot
Buh.tor D.Arc. Froh Andrl6 UriveBitu

PADANC

n.

CERI

(]I\TIA

Pesonal Idcnily

a) Dare ol Br

h Buk,l Combak Snlaf Me' l8'r'

name Elva.ano Naznar and Husorltr

dl D.pa.r'ncnl L.om,n. c) Srud€n No

cl

rs88 b) Pa.cds'

Flculry: hconomics

06 l5l 0ll l1 Drl. of
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

'the Contribuiion OlOp€n Econony 'ro fcononic Cronrh Of$.{ Strm,rem
'Ihesis br:Ceriairli, Elvr\r7nrr Th€sh \,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
thcor! ol
cconoml.s acrivily..rFn and in!.smcdr h!5 poslr\e Elaxonsbips
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
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

{it[

lI r

.n

(orqords: Irrmaiion:J tade e.o.om'c er$l1i. ordir4 lea{ squi(. co lnbulnrn

I hcas LranLn.trion rnJ

SE,

MA

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

Tlrd r
' \J r."ier. 'r\. J..l\,lf.uo'.o
oblarned thc ,\lLnmus Rcsulralion Nunber

ln!

\'dl.r

.

'r

rot

The olficer in charec oflracuLlj_ r^ndalas

Univer$ty ALurnnus ReJjln.aitun No

fa.uhv Alumnus ReqNtiation No

l

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
tu1filln.ssccity

arc cnd in thc rmson that howro

tbc thcor] we Lnow opcn

'n

4onomic sysreors atul closed cconomic slslem. bolh

rcle 10 ,tach welllrc

ol

olllrm

have JiJlereDl

rhcn counlry Closcd ccononric syslctus

.c.non!. rvilh.Lt lorcien tadc. d'cl

lirlfill all ol

ato try ro

dre

uo

thc

nesecil] in

{hcn counay. sonclincs $is thcory olcloscdecon.nic s}{ensare sepamtcd

''.,11.o'ub

" i n.rr\'..!r

is thc Lheroy thal

bari.6.

rlhw

the

o ,..'i.opc' i,,.ri. Jr"
berseo coDlrics..d no rjde

'chri.ships

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

t!de,

becouse oeotle neens

b

rade, we .an t aloitl inrcriarional

tullill the;

*hypcopLcdo iircmationalrradc is (. nsing

N lo lLrllll ness{il}
wellirc but also

can

lishr lo bc rhc bcsr

lift.

a

lle

bcst rcdson

{har

}t.e

ttuduce. rise

country. bccousc cach olcoundcJ

dd Lud.r d€leniped c.unnies in

Accordn8 ro Cdsholnr {l98l) or his

the slobal

b&,llht tricipte!

The pure theorr_

ol inremalional tldc

imflicdrions

nicroec.nonic rsnecrsreler

has micrceconomic and
ro lhe interaction

OJ

pnamdqumtit) for

m

mrkct.

Ec.,onti.s,

mrcroe.dnomic

ofdcntud drd

suppll in individull rarkds. As in domcslic markcrs, rrade esrablishes
equilibnum

.l

lnrernarional tmdc hclps

th. aond dErkei Sonelimes, dereloped coMtrics

Fowerful lhtur devcloping

lLs

wel

dnd consume nror. than

rvo*r cc.ndmics in

i

oessecily and

lradcd eoods md services \\ften

'nokers

an

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.

ourcounlrl. A counrv trr

ard inpod rncds shcn thc forcisn pmducr cnror

10

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

n\

rhe Lvorld n,arker, qualiry rnd price arc somc
acccpt our producl. Fvery

ordcr to nicrcasc expod

gorcmenl

{h

rcsor b!

in lhe wond

inrtort, becousc

n

n.t e{s} to challcnec
the consumers

al{ats suppn

counlq will

ir
10

an elJbn ni

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

lnd.ncsidn cdonomy rro dependenl
natural resouices dar de exp.n

to lntenntional lndc, esrucilll]

b o$c6 countries ol dcstidtions

ol
aor

Besides

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

welift

! .ou.try, cconomic dcvclopmcnt k signilicmr Jircror
h.tu lhc ncw inl.rcsr in rhc Jctcminlnls ol economic dcvelopfrenr ht\
Td nsc

in

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
spcciaLizarion h rese.rch inleisive production (Ann Hri$i. 1995)

CHAPTER

!'I

CONCI,IJSSION AND PECO

According lo the resdl of llis nsemh,

L Inlemtioml t.de sisnin@dy
Esulr of

ftis

Fseach €xpon

csuse

kiter

conclndc thal:

b $€

4onomic groq$. Acording

dd inlon

haae bis conr.ibution

b

tne

of@nooy {Cms Rqioml Don6tics Poduct), eEsiolly in the
cde ol Vesl SMaled The elTect of intemtio.al trade lo Cbss
glov1h

Regional Donestics Pnducl hol

.dpibl eood irmn. har

juL

nudjElrl)

&om export setor, but
nse

*onor

r.

er

.ho

eom

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,
soods isporl. md inv€shrent), it is

dimtly sue @nonic grcfih. The

elidoce shoes dal Cro$ Regiorel Don6lis
t@ f01l !@h frinls lelel ol GDP.

€pitll

tuucl

of West Smatem

investue als fall dom whcr* n

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

doq,

ol lsde of Vest SlmteE stiu in tno positive side. Mens
dLL We{ cmar.m h^e Cood ope"non ro fre &onomrc ririi.

the baldce

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
the
5.

hil

2009 in

Vest Swalen aonoDy.

west Smalera

qp.n b ndy

vcry importonr to

incre

cobEies of destimtion. this a.livity dc

src*th in Wcsl Smalen. Tne bigg4l mounl

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