THE EFFECT EXSPORTS AND IMPORTS ON THE BALANCE OF TRADE: A QUANTITATIVE ANALISYS

Abstract

This study aims to analyze the influence of exports and imports on Indonesia's trade balance using a quantitative approach. The trade balance is an important indicator in assessing a country's economic performance, determined by the difference between the value of exports and imports. The data used are secondary data in the form of the value of Indonesia's exports, imports, and trade balance obtained from official government publications and statistical agencies. The analytical method used is multiple linear regression analysis to measure the influence of export and import variables on the trade balance. The results show that exports have a positive and significant effect on the trade balance, while imports have a negative and significant effect on the trade balance. These findings indicate that increasing exports can improve the trade balance, while increasing imports that are not balanced by increased exports can cause a trade deficit. Therefore, the government needs to encourage increased competitiveness of export products and control imports of unproductive consumer goods.