Spillover Effect OfUs Economic Policy Uncertainty On Indonesian Economic Growth

Abstract

This study aims to examine the spillover effect of the uncertainty of US economic policy on Indonesia's economic growth. SVARmodel is used to observe the connecting channel of the spillover effect. The results show that the uncertainty of US economic policy can spill on Indonesia's economic growth through FDI as a financial channel. The higher the percentage of US FDI to total FDI in Indonesia, the more vulnerable the Indonesian economy will be when there is shock in the US economic policy uncertainty