Analysis of Effect of Foreign Direct Investment, Debt to the IMF and Stock Values Against Economic Growth in Developing Countries Members of the Organization of Islamic Cooperation (OIC)
Abstract
The economic growth of Islamic countries in the last decade has a significant economic growth trend. One of the causes of the increasing economic growth of the Islamic State of the OIC is the increasing flow of foreign capital into developing Islamic countries, which has an impact on the rapid growth of infrastructure in the country concerned. Debt to the IMF is also an alternative for the country to get cash injections, this is also done by developing Islamic countries of OIC members to get cash injections to increase economic growth. Stock trading is also one of the key factors of economic activity in various countries, including the developing Islamic countries of the OIC member. The purpose of this study is to see how much influence foreign direct investment, debt to IMF and share value on economic growth in the Islamic developing countries of OIC members. The analytical tool used in this study is panel data regression with a fixed effect model. As a result, foreign direct investment and stock value have a significant positive effect on economic growth, while debt to the IMF has a significant negative effect on economic growth.
Keywords: Foreign Direct Investment, Debt to the IMF, Stock Values, Economic Growth, Organization of Islamic Cooperation (OIC)
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