The Impact of Macroeconomic and Digital Economy Factors on the GDP of the ASEAN-5

Novlyzanta Chantika Prameswary; Ladi Wajuba Perdini Fisabilillah

doi:10.55927/fjmr.v5i4.60

Authors

Novlyzanta Chantika Prameswary Universitas Negeri Surabaya
Ladi Wajuba Perdini Fisabilillah Universitas Negeri Surabaya

DOI:

https://doi.org/10.55927/fjmr.v5i4.60

Keywords:

FDI, Exchange Rates, Inflation, Digital Economy, ASEAN-5

Abstract

The integration of the digital economy and macroeconomic factors is increasingly influencing economic growth in the ASEAN-5 region, particularly in Indonesia, Malaysia, Singapore, the Philippines, and Thailand. This phenomenon is worth studying given the region’s dependence on foreign investment, exchange rate stability, and internet adoption. This study aims to analyze the effects of FDI, exchange rates, inflation, and the number of internet users on GDP for the period 2014–2024. A quantitative approach using panel data regression with the Common Effect Model (CEM) was employed, utilizing Stata 14. The results indicate that FDI, exchange rates, and internet users have a positive and significant impact on GDP, while inflation has a negative but insignificant impact. These findings suggest that foreign investment, exchange rate stability, and digital economy adoption play a crucial role in driving regional economic growth, whereas inflationary pressures still need to be controlled.

References

Aawaar, D. D., & Abotsi, A. K. (2025). Effect of Internet usage on economic growth in Ghana and moderating role of government effectiveness. Journal of Electronic Business & Digital Economics, 4(2), 296–316. https://doi.org/10.1108/JEBDE-12-2024-0056

Adya, T. V. (2024). IMPACT OF E-COMMERCE AND INTERNET USERS ON INDONESIA ’ S ECONOMIC GROWTH. 317–327.

Audi, M., Ahmad, K., Poulin, M., & Ali, A. (2025). From globalization to innovation: investigating the impact of R&D, internet penetration, and economic factors on digitalization in BRICS. Research in Globalization, 11, 100314. https://doi.org/10.1016/j.resglo.2025.100314

Berg, A., & Miao, Y. (2010). The Real Exchange Rate and Growth Revisited: The Washington Consensus Strikes Back? IMF Working Papers, 10(58), 1. https://doi.org/10.5089/9781451963755.001

Chikwira, C., & Jahed, M. I. (2024). Analysis of Exchange Rate Stability on the Economic Growth Process of a Developing Country: The Case of South Africa from 2000 to 2023. Economies, 12(11), 296. https://doi.org/10.3390/economies12110296

Dhungel, B. D., & Lamichhane, P. (2023). Impact of Foreign Direct Investment on Economic Growth. Humanities and Social Sciences Journal, 15(1–2), 1–13. https://doi.org/10.3126/hssj.v15i1-2.63734

Fazaalloh, A. M. (2024). FDI and economic growth in Indonesia: a provincial and sectoral analysis. Journal of Economic Structures, 13(1), 3. https://doi.org/10.1186/s40008-023-00323-w

Hordofa, D. F. (2023). Impacts of external factors on Ethiopia’s economic growth: Insights on foreign direct investment, remittances, exchange rates, and imports. Heliyon, 9(12), e22847. https://doi.org/10.1016/j.heliyon.2023.e22847

Husain Saefurrahman, A., & Preticia, Z. (2023). Analisis Dampak Perdagangan Bebas ASEAN Terhadap Pertumbuhan Ekonomi Regional Tahun 2017-2021. J-CEKI : Jurnal Cendekia Ilmiah, 3(1), 180–187. https://doi.org/10.56799/jceki.v3i1.2468

Imleesh, M. M. M., Arief, S., & Rozi, F. (2025). Antecedents and Consequences of Economic Growth in ASEAN Countries. Journal of Economic Education, 14(1), 110–123. https://doi.org/10.15294/jeec.v14i1.24717

Ishikawa, K. (2021). The ASEAN Economic Community and ASEAN economic integration. Journal of Contemporary East Asia Studies, 10(1), 24–41. https://doi.org/10.1080/24761028.2021.1891702

Joyce, J. P. (2024). The impact of FDI income on income shares in home countries. The Journal of Economic Inequality, 22(2), 265–284. https://doi.org/10.1007/s10888-023-09592-8

Krekó, J., & Oblath, G. (2020). Economic growth and real exchange rate misalignments in the European Union. Acta Oeconomica, 70(3), 297–332. https://doi.org/10.1556/032.2020.00016

Mankiw, N. G. (n.d.). MACROECONOMICS , Ninth Edition.

Mankiw, N. G. (2013). Pengantar Ekonomi Makro (7th ed.). Salemba Empat.

Mary Obiageli, E., & Ndubuisi Felix, N. (2024). Inflation and Macroeconomic Performance in Nigeria. International Journal of Research and Innovation in Social Science, VIII(IIIS), 2186–2199. https://doi.org/10.47772/IJRISS.2024.803159S

Nasrullah, M. J. (2023). Inflation and Sustainable Human Development: Assessing the Role of Public Expenditures in Threshold Effect. IBT Journal of Business Studies, 19(2), 179–199. https://doi.org/10.46745/ilma.jbs.2023.19.02.05

Nguyen, C. Van. (2025). The Role of Economic Integration Policies in Increasing Economic Growth in Selected Southeast Asian Countries. Journal of Risk and Financial Management, 18(5), 229. https://doi.org/10.3390/jrfm18050229

Nyeche, E. (2024). Impact of exchange rate on economic growth in Nigeria. International Journal of Advanced Economics, 6(6), 242–250. https://doi.org/10.51594/ijae.v6i6.1237

orhamizah Abdul Wahaba, Sabri Nayanb, Y. K. C. (2020). Internet User and Economic Selected Southeast Asia Nations: A Panel Data Analysis. Journal of Emerging Economies and Islamic Research. https://doi.org/10.24191/jeeir.v8i3.8952

Otieno, O. W., & Aduda, J. (2022). FOREIGN DIRECT INVESTMENTS AND ECONOMIC GROWTH: A CRITICAL LITERATURE REVIEW. International Journal of Finance, 7(3), 34–60. https://doi.org/10.47941/ijf.971

Putra, F. A., & Anindyntha, F. A. (2024). Impact of macroeconomic variables and digital technology on economic growth in ASEAN-5 countries. Journal of Enterprise and Development (JED), 6(2), 4–15.

Putra, R. C. Y., & Soebagiyo, D. (2023). Analisis Pengaruh Inflasi, Nilai Tukar Mata Uang, Dan PDB Terhadap Pertumbuhan Ekonomi Di 5 Negara ASEAN Tahun 2007-2022. 3(4), 561–565.

Sein, P., & Sah, A. N. (2025). Export dynamics, exchange rate volatility, and economic stability: evidence from Asia-Pacific economies. Humanities and Social Sciences Communications, 12(1), 808. https://doi.org/10.1057/s41599-025-05099-x

Su, Y., & Liu, Z. (2016). The impact of foreign direct investment and human capital on economic growth: Evidence from Chinese cities. China Economic Review, 37, 97–109. https://doi.org/10.1016/j.chieco.2015.12.007

Vu, K. M. (2019). The internet-growth link: An examination of studies with conflicting results and new evidence on the network effect. Telecommunications Policy, 43(5), 474–483. https://doi.org/10.1016/j.telpol.2019.04.002

Wau, T., Sarah, U. M., Pritanti, D., Ramadhani, Y., & Ikhsan, M. S. (2022). Determinan Pertumbuhan Ekonomi Negara ASEAN: Model Data Panel. Jurnal Samudra Ekonomi Dan Bisnis, 13(2), 163–176. https://doi.org/10.33059/jseb.v13i2.5205

Xuan, V. N. (2025). Nexus of GDP, FDI, Inflation, Exchange Rate, Renewable Energy, Trade Openness, and Open Innovation in Singapore: New evidence from the ARDL method. Sustainable Futures, 9(March), 100628. https://doi.org/10.1016/j.sftr.2025.100628

Zhou, X., Cui, Y., & Zhang, S. (2020). Internet use and rural residents’ income growth. China Agricultural Economic Review, 12(2), 315–327. https://doi.org/10.1108/CAER-06-2019-0094