Pendekatan VECM Pada Variabel FDI dan Impor Terhadap Cadangan Devisa Negara

Foreign Exchange Reserves is an important economic variable that gets great attention from world countries, especially for developing countries where it plays a role in the amount of foreign exchange owned by the government or private sector of a country. This study analyzes the relationship between FDI and Import variables on foreign exchange reserves which are expected to affect the movement of foreign exchange reserves for the period 1991-2021. The method used is the Vector Error Correction Model (VECM) after it is known that there is a cointegration relationship in the VAR model test. The results show that in the short term, the FDI variable has no significant effect on foreign exchange reserves