Penelitian ini menganalisis pengaruh trade openness dan foreign direct investment terhadap pertumbuhan ekonomi negara-negara anggota G20 pada periode 1999–2023. Penelitian ini juga mempertimbangkan variabel konsumsi rumah tangga dan kemajuan teknologi sebagai faktor pendukung dalam penelitian. Penelitian ini menggunakan pendekatan kuantitatif. Data diolah menggunakan analisis regresi data panel dengan model Random Effect Model (REM) guna mengetahui hubungan antar variabel. Hasil penelitian menunjukkan bahwa trade openness memiliki pengaruh negatif signifikan terhadap pertumbuhan ekonomi. Sebaliknya, foreign direct investment memiliki pengaruh positif signifikan terhadap pertumbuhan ekonomi. Variabel konsumsi rumah tangga menunjukkan dampak negatif, sementara kemajuan teknologi memberikan pengaruh positif signifikan terhadap pertumbuhan ekonomi. Kesimpulannya, keterbukaan ekonomi dapat memberikan dampak yang berbeda pada pertumbuhan ekonomi bergantung pada kondisi spesifik masing-masing negara. Oleh karena itu, diperlukan kebijakan yang strategis dari pemerintah untuk memitigasi dampak negatif trade openness dan memaksimalkan manfaat foreign direct investment di G20.
This study aims to analyse the effect of trade openness and Foreign Direct Investment (FDI) on economic growth of G20 member countries in the period 1999-2023. This study also considers the variables of household consumption and technological progress as supporting factors in the study. This research uses a quantitative approach. The data used in this study are secondary data sourced from the world bank. The data is processed using panel data regression analysis with the Random Effect Model (REM) model to determine the relationship between variables. The results showed that trade openness has a significant negative effect on economic growth. In contrast, foreign direct investment (FDI) has a significant positive effect on economic growth. Household consumption variable shows a negative impact, while technological progress has a significant positive effect on economic growth. The conclusion is that economic openness can have different impacts on economic growth depending on the specific conditions of each country. Therefore, strategic government policies are needed to mitigate the negative impact of trade openness and maximise the benefits of foreign direct investment in G20 countries.