ASEAN Economic Dynamics: Analysis of the Impact of Trade Openness, Foreign Direct Investment, and Exports on Economic Growth

This study aims to explain economic growth in ASEAN countries. The variables influencing the economic growth rate are trade openness, foreign investment, and exports. The study uses secondary data from the World Bank and UNCTAD. The data are annual from 2018 to 2023. The analytical tool used is the Vector Error Corrections Model (VECM), which uses the unit root test, optimal lag test, cointegration test, and VECM model. The results show that in the short-term analysis, trade openness, FDI, and exports affect economic growth, but FDI and exports are detrimental to economic growth. In the long term, the results of this study indicate that trade openness does not affect economic growth. At the same time, FDI significantly affects economic growth in ASEAN countries, but exports do not.