Analysis of Correlation Between Indonesian Composite Index and Economic Growth in Indonesia

摘要

This study aims to analyze the correlation between the Indonesia Composite Index (ICI) and Economic Growth in Indonesia. This study uses time series data for the period 2001 – 2018, the secondary data have been obtained from the Indonesian Central Statistics Agency and Bank Indonesia (BI). The data analysis method uses “Two stage lest square simultaneous equation model” to explain the reciprocal correclation between the Indonesian Composite Index (ICI) and economic growth, Gross Domestic Product (GDP) in Indonesia. The analysis shows that both variables have a positive and significant feedback effect in the long term.