Analysis Of The Impact Of International Trade Openness On GDP In Seven ASEAN Countries

This study aims to analyze the relationship between international trade openness, foreign direct investment, and the number of productive population to gross domestic product (GDP) in seven ASEAN member countries, namely Indonesia, Malaysia, Singapore, the Philippines, Thailand, Vietnam, and Cambodia. This topic is interesting because ASEAN member countries have different economic, trade, and social characteristics, so that not all countries experience an even increase every year. The research question proposed is how trade openness, FDI, and the number of productive population affect GDP in these countries. The novelty of this study lies in the analysis that combines the three variables in the context of seven ASEAN countries in the period 1993 - 2023 which has not been studied in depth before. The random effect model (REM) is used for the regression analysis of panel data in this study. The results of the study show that all independent variables, namely international trade openness, FDI, and the number of productive population have a significant positive effect on gross domestic product (GDP). Overall, the independent variables can explain GDP by 78.3 percent. This study confirms that openness to international trade, foreign direct investment, and population are factors driving GDP in seven ASEAN member countries.