Suchergebnisse

The nexus between foreign direct investment and economic growth has long been among the most debated issues in macroeconomics. Some studies find a positive link between the two factors, but others find no evidence. This current research fills the gap by analysing the causal nexus between foreign direct investment and economic growth in Indonesia for the period 1970-2018. Indonesia as a developing country is one of the largest recipients of FDI flow; hence the study on the impact of FDI on the economic growth is very much important. This current research employs a contemporary time-series procedure, involving several unit-root tests namely Augmented-Dickey-Fuller (ADF), Phillips-Perron (PP), Kwiatkowski-Phillips-Schmidt-Shin (KPSS), and Lee-Strazicich (LS), an Auto-Regressive-Distributed-Lag (ARDL) bounds-testing method for cointegration, and Granger causality test. The findings provide evidence of long-run and short-run causal direction from GDP to FDI. In contrast, FDI generates only a short-run relationship on GDP. The Granger causality test confirms the finding in ARDL that there is a unidirectional causality running from GDP to FDI.

This study is a replication of the results of research Alam and Shah (2013). This study aims to identify and analyze the factors that influence the foreign direct investment (FDI) in ASEAN in 2000-2013. GDP growth in every country is important to be maintained in order not to decrease due to the growth of GDP will reflect the country's economic growth. Foreign direct investment (FDI) is one way to increase GDP growth. AEC 2015 will facilitate the access of FDI in ASEAN countries so that the opportunity to develop a PMA needs to be optimized. Factors tested in this study, namely market size, labor force, labor productivity, the corporate tax rate, trade openness, political stability, exchange rate, inflation, and the quality of infrastructure. Data management is using Ordinary Least Square is a method of data panel with software E-views 6. The data used are secondary data obtained from the World Bank, The Conference Board, and KPMG. These results indicate that the market size and political stability is a variable that can attract FDI into the country. The higher the value of market size and its political stability, the value of FDI entry also higher.

Political risk is a risk that occurs due to political disturbances in a country that can affect its economy. This risk is one of the risks that investors consider when investing in a country. High political risks can create obstacles that potentially disrupt investors' business operations. This study aims to see the impact of political risk on Foreign Direct Investment (FDI) in the ASEAN region in 1996-2019 using panel data analysis with the best model, namely the fixed effect model (FEM). Sources of data in this study came from the World Governance Indicator (WGI) and World Development Indicator (WDI). The results of this study indicate that political risk as reflected in political stability and regulatory quality has a significant influence on FDI inflows in the ASEAN region. Political instability could make investors reluctant to invest in the country due to the concern about disturbances that will occur in the future. The role of governments in ASEAN countries is needed to maintain political stability and attract more foreign investors to invest in the ASEAN region. In addition, a country needs to have good regulatory quality so that investors do not experience obstacles in the early stages of investment. Complicated licensing and many regulations can be one of the obstacles in investing.