The Effect of Population Growth, Macroeconomic Indicators on Economic Growth in OIC Countries Habibullah(a*), Sri Herianingrum (b) Dimas Bagus Wiranatakusuma (c)
a) Faculty of Economics and Business, Airlangga university, Jl. Airlangga 4-6, Surabaya 60115, Indonesia
*habibullah.economics17[at]gmail.com
b)Faculty of Economics and Business, Airlangga university, Jl. Airlangga 4-6, Surabaya 60115, Indonesia
c) Faculty of Econimics and Business, Universitas Muhammadiyah Yogyakarta, JL. Brawijaya, Yogyakarta 55183, Indonesia
Abstract
There are many studies on the effect of population growth on economic growth, but few studies focus on OIC member countries with the highest population. This study aims to examine the effect of population growth, foreign direct investment (FDI), total consumption expenditure, export growth, inflation rate and exchange rate on economic growth in Bangladesh, Pakistan, Egypt, Indonesia and Nigeria. Data is sourced from the World Bank and the official State Bureau of Statistics from 2000 to 2022. This study uses a random effect model to analyze the relationship between variables. The findings show that population growth and inflation have no significant negative effect on economic growth, foreign direct investment, consumption, and exports have a significant positive effect on economic growth. While the exchange rate has no significant positive effect on economic growth. This research contributes to understanding the complex interactions between variables and provides a foundation for informed policy choices to promote sustainable development and economic prosperity. The advantage of this research is the focus on the 5 OIC member countries with the highest population using the latest data.
Keywords: Population growth- Economic growth- Macroeconomics- OIC
Keywords: Population- Macroeconomics- Organization of Islamic Cooperation- Islamic Economics
