Determinant Foreign Direct Invesment (FDI) in Indonesia


Authors : Abd Muis Kaimuddin

Volume/Issue : Volume 8 - 2023, Issue 11 - November

Google Scholar : https://tinyurl.com/muf5jha3

Scribd : https://tinyurl.com/3ncce24h

DOI : https://doi.org/10.5281/zenodo.10159587

Abstract : This study is to investigate impact of Gross Domestic Product (GDP), inflation, interest rates, exports and imports on Foreign Direct Investment (FDI) in Indonesia. The analysis employs is Ordinary Least Square (OLS) with Error Correction Model (ECM) using Eviews 12. The findings indicate that in the long-term inflation, interest rates, exports, and imports affect FDI. However, in the short term just inflation and imports have a significant impat on FDI in Indonesia.

Keywords : FDI, Macroeconomic, ECM.

This study is to investigate impact of Gross Domestic Product (GDP), inflation, interest rates, exports and imports on Foreign Direct Investment (FDI) in Indonesia. The analysis employs is Ordinary Least Square (OLS) with Error Correction Model (ECM) using Eviews 12. The findings indicate that in the long-term inflation, interest rates, exports, and imports affect FDI. However, in the short term just inflation and imports have a significant impat on FDI in Indonesia.

Keywords : FDI, Macroeconomic, ECM.

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