Determinants of Foreign Direct Investment in Indonesia “Evidence from Co-Integration and Error Correction Modeling”

ABSTRACTIndonesia has abundant diversity of resources to promote economic growth, and insufficient capital will lead to economic stagnation. This paper aims at examining the impact of macroeconomic indicators such as gross domestic product and inflation toward foreign direct investment in Indonesia as well as investigating the ease of doing business factors in explaining foreign direct investment. This research involved a time-series from 2014 to 2019, which was collected from several official websites of Statistics Indonesia (BPS), Central Bank of Indonesia (BI), the Investment Coordinating Board (BKPM), and World Bank. Furthermore, the data were analyzed undergoing multiple linear regression analyses with the Ordinary Least Square (OLS) model. The findings indicate that gross domestic product has a positive impact on foreign direct investment, while inflation has a negative effect. Also, the ease of doing business variables failed in explaining a significant influence between foreign direct investment in Indonesia.ABSTRAKIndonesia memiliki keanekaragaman sumber daya yang melimpah untuk mendorong pertumbuhan ekonomi namun permasalahan permodalan menyebabkan kelambanan yang menyebabkan stagnasi ekonomi. Penelitian ini bertujuan untuk menguji pengaruh indikator makroekonomi seperti produk domestik bruto dan inflasi terhadap investasi asing langsung di Indonesia. Penelitian ini juga menyelidiki faktor-faktor kemudahan berbisnis dalam menjelaskan investasi asing langsung. Data penelitian ini adalah time-series 2014-2019, yang diperoleh dari beberapa situs resmi termasuk Badan Pusat Statistik (BPS), Bank Sentral Indonesia (BI), Badan Koordinasi Penanaman Modal (BKPM), dan Bank Dunia. Selanjutnya data tersebut dianalisis dengan menggunakan analisis regresi linier berganda dengan model Ordinary Least Square (OLS). Hasil penelitian menunjukkan bahwa produk domestik bruto berpengaruh positif terhadap investasi asing langsung, sedangkan inflasi berpengaruh negatif. Selain itu, variabel kemudahan berbisnis gagal menjelaskan pengaruh yang signifikan antara investasi asing langsung di Indonesia.

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Macroeconomic Determinants of Stock Price Variations: An Economic Analysis of Kse-100 Index

Pakistan Journal of Humanities and Social Sciences ◽

10.52131/pjhss.2013.0101.0003 ◽

2013 ◽

Vol 1 (1) ◽

pp. 28-46

Author(s):

Altaf Hussain ◽

Musrat Rafique ◽

Ambar Khalil ◽

Maryam Nawaz

Keyword(s):

Foreign Direct Investment ◽

Gross Domestic Product ◽

Interest Rates ◽

Money Supply ◽

Unemployment Rate ◽

Stock Prices ◽

Stock Price ◽

Direct Investment ◽

Domestic Product ◽

Macroeconomic Determinants

The main objective of this study is to assess the macroeconomic determinants of stock price variability in Pakistan. The quarterly data on macroeconomic variables (Gross Domestic Product, Foreign Direct Investment, Interest Rates, Exports, Money Supply and Unemployment Rate) and KSE-100 Index as proxy of stock price variation for the period of 1992:01 to 2012:04 is taken for the empirical investigation. Johansen co-integration test and VECM is used for this purpose. The analysis of this study specifies that the foreign direct investment, interest rates, export and unemployment rate have significant and negative impact on KSE-100 index, while money supply has found to be a significant and positive determinant of stock prices. On the other hand gross domestic product have a positive but insignificant impact on stock prices in Pakistan.

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THE ANALYSIS THE EFFECT OF MACROECONOMIC FACTORS ON INDONESIA 10-YEAR GOVERNMENT BOND YIELD

Dinasti International Journal of Digital Business Management ◽

10.31933/dijdbm.v2i3.697 ◽

2021 ◽

Vol 2 (3) ◽

pp. 471-481

Author(s):

Chyntia Juliana Pratiwi ◽

Matrodji H. Mustafa

Keyword(s):

Gross Domestic Product ◽

Exchange Rates ◽

Interest Rates ◽

Domestic Product ◽

Government Bond ◽

Sovereign Risk ◽

Macroeconomic Factors ◽

Government Bonds ◽

Bond Yield ◽

Analysis Technique

The purpose of this research is to analyze macroeconomics, namely Inflation, Gross Domestic Product, Exchange Rates, Interest Rates and Sovereign Risk to Indonesia 10-Year Government Bond Yield. The population in this study were all government bond yield tenors of the benchmark series for the period 2017 to 2019. The type of research used in this study is causal associative research. The research sample is Indonesian government bonds with a tenor of 10 years. The sample amounted to 36 data. The data analysis technique used multiple regression analysis method. The results showed that inflation and Gross Domestic Product have no effect on the Indonesia 10-Year Government Bond Yield. Exchange Rates, Interest Rates and Sovereign Risk have a positive and significant effect on the Indonesia 10-Year Government Bond Yield.

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Determinan Ekspor Di Indonesia

Jurnal Ecodemica Jurnal Ekonomi Manajemen dan Bisnis ◽

10.31294/jeco.v4i2.8275 ◽

2020 ◽

Vol 4 (2) ◽

pp. 307-317

Author(s):

Fanny Septina

Keyword(s):

Foreign Direct Investment ◽

Exchange Rate ◽

Gross Domestic Product ◽

Error Correction ◽

Direct Investment ◽

Oil And Gas ◽

Error Correction Model ◽

Domestic Product ◽

Correction Model ◽

Us Dollar

ABSTRACTThis study aims to explore macroeconomic factors that affect non-oil and gas exports in Indonesia. The research data are non-oil and gas export data, Gross Domestic Product, inflation, US dollar exchange rate, foreign direct investment in the 2010-2019 period published by Bank Indonesia statistics. The research method uses the Vector Error Correction Model (VECM) analysis with the Augmented Dickey Fuller (ADF) stationary test, Johansen's cointegration test, Granger causality test, Error Correction Model. The results showed there was a cointegration relationship between all dependent and independent variables, a direct relationship with the US dollar exchange rate and inflation on Gross Domestic Product, Gross Domestic Product on exports. In the short term Gross Domestic Product, inflation, exchange rates, and foreign direct investment have no significant effect on non-oil and gas exports. In the long run, Gross Domestic Product has a significant effect on non-oil and gas exports.Keywords: non-oil export, macroeconomy, cointegration, causality, error correction model

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THE ANALYSIS OF FOREIGN DIRECT INVESTMENT AND ITS AFFECTING FACTORS IN INDONESIA

Quantitative Economics Journal ◽

10.24114/qej.v9i1.23570 ◽

2021 ◽

Vol 9 (1) ◽

Author(s):

Fuji Astuty

Keyword(s):

Foreign Direct Investment ◽

Gross Domestic Product ◽

Exchange Rates ◽

Direct Investment ◽

Time Series Data ◽

Labour Productivity ◽

Secondary Data ◽

Domestic Product ◽

Series Data ◽

Affecting Factors

Foreign Direct Investment gave benefits in improving Indonesia's economics matters in Indonesia. Conseptually, Foreign Direct Investment (FDI) more benefecial because no return to the investor such as debt in foreign country, beside Foreign Direct Investment (FDI) in a country will be followed by transfer of technology, know-how, management skills, the risks of business was smaller and more profitable. However, the problem of global economic that occured affecting the development of Foreign Direct Investment (FDI) in Indonesia decreased and the growth became slowly. Then domestic and global factors weren’t stable influencing the decrease Foreign Direct Investment (FDI) in Indonesia. Therefore, it’s needed to examine the factors influencing Foreign Direct Investment (FDI). This study aimed to know and analyze some factors affecting Foreign Direct Investment (FDI) in Indonesia consisting gross domestic product, the level of real interest, exchange rates, labour produtivity, and exports. The affecting analysis be done in short-time by using Error Correction Mechanism = ECM technique. It was used time series data from 2000 to 2013 using Eviews 6.0. The type of data used was secondary data obtained from Indonesia Bank (BI), Central Bureau of Statistics (BPS), Federal Reserve Bank of St. Louis and United Nations Economic Social Commision for Asia and the Pacific (UNESCAP). The results of this study showed that gross domestic product, the level of real interest, exchange rates, and labour productivity had positive affection significantly on Foreign Direct Investment (FDI) in Indonesia. While the exports had negative affection significantly on Foreign Direct Investment (FDI) in Indonesia. From determination coefficient (R2) showed that the variables explained 97.13 percent on Foreign Direct Investment (FDI) in Indonesia while the rest 2.87 percent was explained by variables out of models (not studied).

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THE ANALYSIS OF FOREIGN DIRECT INVESTMENT AND ITS AFFECTING FACTORS IN INDONESIA

Quantitative Economics Journal ◽

10.24114/qej.v9i1.23597 ◽

2021 ◽

Vol 9 (1) ◽

pp. 23

Author(s):

Fuji Astuty

Keyword(s):

Foreign Direct Investment ◽

Gross Domestic Product ◽

Exchange Rates ◽

Direct Investment ◽

Time Series Data ◽

Labour Productivity ◽

Secondary Data ◽

Domestic Product ◽

Series Data ◽

Affecting Factors

Foreign Direct Investment gave benefits in improving Indonesia's economics matters in Indonesia. Conseptually, Foreign Direct Investment (FDI) more benefecial because no return to the investor such as debt in foreign country, beside Foreign Direct Investment (FDI) in a country will be followed by transfer of technology, know-how, management skills, the risks of business was smaller and more profitable. However, the problem of global economic that occured affecting the development of Foreign Direct Investment (FDI) in Indonesia decreased and the growth became slowly. Then domestic and global factors weren’t stable influencing the decrease Foreign Direct Investment (FDI) in Indonesia. Therefore, it’s needed to examine the factors influencing Foreign Direct Investment (FDI). This study aimed to know and analyze some factors affecting Foreign Direct Investment (FDI) in Indonesia consisting gross domestic product, the level of real interest, exchange rates, labour produtivity, and exports. The affecting analysis be done in short-time by using Error Correction Mechanism = ECM technique. It was used time series data from 2000 to 2013 using Eviews 6.0. The type of data used was secondary data obtained from Indonesia Bank (BI), Central Bureau of Statistics (BPS), Federal Reserve Bank of St. Louis and United Nations Economic Social Commision for Asia and the Pacific (UNESCAP). The results of this study showed that gross domestic product, the level of real interest, exchange rates, and labour productivity had positive affection significantly on Foreign Direct Investment (FDI) in Indonesia. While the exports had negative affection significantly on Foreign Direct Investment (FDI) in Indonesia. From determination coefficient (R2) showed that the variables explained 97.13 percent on Foreign Direct Investment (FDI) in Indonesia while the rest 2.87 percent was explained by variables out of models (not studied).

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ANALISIS DETERMINAN KUALITAS LINGKUNGAN PERIODE 1999-2013

Jurnal Ekonomi dan Bisnis ◽

10.24123/jeb.v21i1.1632 ◽

2016 ◽

Vol 21 (1) ◽

pp. 9-20

Author(s):

Ersalina Tang

Keyword(s):

Foreign Direct Investment ◽

Energy Consumption ◽

Gross Domestic Product ◽

Co2 Emissions ◽

Direct Investment ◽

Meat Consumption ◽

Domestic Product ◽

World Data ◽

The World ◽

The Impact

The purpose of this study is to analyze the impact of Foreign Direct Investment, Gross Domestic Product, Energy Consumption, Electric Consumption, and Meat Consumption on CO2 emissions of 41 countries in the world using panel data from 1999 to 2013. After analyzing 41 countries in the world data, furthermore 17 countries in Asia was analyzed with the same period. This study utilized quantitative approach with Ordinary Least Square (OLS) regression method. The results of 41 countries in the world data indicates that Foreign Direct Investment, Gross Domestic Product, Energy Consumption, and Meat Consumption significantlyaffect Environmental Qualities which measured by CO2 emissions. Whilst the results of 17 countries in Asia data implies that Foreign Direct Investment, Energy Consumption, and Electric Consumption significantlyaffect Environmental Qualities. However, Gross Domestic Product and Meat Consumption does not affect Environmental Qualities.

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Pengaruh Pertumbuhan Ekonomi, Foreign Direct Investment dan Tax Rate Terhadap Penerimaan PPh Badan Negara ASEAN

Indonesian Treasury Review Jurnal Perbendaharaan Keuangan Negara dan Kebijakan Publik ◽

10.33105/itrev.v5i4.240 ◽

2020 ◽

Vol 5 (4) ◽

pp. 325-342

Author(s):

Merry Inriama ◽

Milla Sepliana Setyowati

Keyword(s):

Foreign Direct Investment ◽

Gross Domestic Product ◽

Direct Investment ◽

Random Effect ◽

Random Effect Model ◽

Least Square ◽

Domestic Product ◽

Tax Rate ◽

Effect Model

Keterbukaan perekonomian menjadi penentu yang penting dalam pertumbuhan ekonomi. Kondisi perekonomian suatu negara dapat memberi dampak terhadap penerimaan sektor perpajakan. Hal ini dapat dilihat dari salah satu penerimaan pajak suatu negara yaitu melalui penerimaan PPh Badan. Tujuan dalam penelitian ini adalah untuk menganalisis pengaruh pertumbuhan ekonomi yang diukur dengan Gross Domestic Product (GDP), Foreign Direct Investment (FDI), dan Tax Rate terhadap besarnya penerimaan PPh Badan (CIT) dalam kasus lima negara ASEAN selama periode 1999-2018. Metode penelitian ini dilakukan dengan menggunakan regresi data panel dengan estimasi Random Effect Model atau Generalized Least Square (GLS) dengan program Eviews. Hasil penelitian ini secara simultan menunjukkan bahwa variabel independen yaitu GDP, FDI, dan tax rate memiliki pengaruh yang signifikan terhadap variabel dependen yaitu penerimaan PPh Badan (CIT). Secara parsial PDB dan tax rate memiliki pengaruh positif dan signifikan yang artinya kenaikan atau penurunan GDP dan tax rate akan mempengaruhi kenaikan atau penurunan penerimaan PPh Badan (CIT), sedangkan FDI tidak memiliki pengaruh terhadap penerimaan PPh Badan (CIT). Melalui penelitian ini diharapkan dapat mengukur variabel-variabel yang memiliki pengaruh terhadap penerimaan PPh Badan, sehingga penerimaan PPh Badan dapat ditingkatkan.

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