scholarly journals Using Pooled Model, Random Model And Fixed Model Multiple Regression To Measure Foreign Direct Investment In Taiwan

2011 ◽  
Vol 4 (12) ◽  
Author(s):  
Thomas Hiestand
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Random Effect ◽  
Labor Cost ◽  
Random Model ◽  
Market Size ◽  
Fe Model ◽  
Literacy Rate ◽  
Cost Distance ◽  
Fixed Model

Through out the paper, two questions will be answered. The first question is, which are the countries that contribute largely to Taiwan FDI? The second question the paper is going to explore is what are the factors that draw FDI into Taiwan. According to the current literature on FDI in other countries, the determinants of FDI are relative market size, relative labor cost, distance and literacy rate. Three versions of the empirical model were estimated. They are Pooled regression model, Fixed Effect (FE) model, and Random Effect (RE) model. Throughout the three models, the relative market size hypothesis was consistently proved to be a key determinant of FDI in Taiwan.

scholarly journals Determinants of Foreign Direct Investment in Indonesia

2021 ◽  
Vol 3 (2) ◽  
pp. 499-510
Author(s):  
Cynthia Sari Dewi ◽  
Farend Olivia Hutomo
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Direct Investment ◽  
Time Series Data ◽  
Linear Regression Analysis ◽  
Trade Openness ◽  
Labor Cost ◽  
Series Data ◽  
Market Size

The objective of this research is to investigate the influence of macroeconomic factors such as market size, labor cost, interest rate, exchange rate, trade openness, and inflation to the foreign direct investment in Indonesia. This research uses a quantitative approach with time series data, quarterly from 2006 to 2019. The data is processed using SPSS Statistics 23 software, specifically linear regression analysis method and passed the classical assumption test. Results show that there is a partially significant relationship between market size, labor cost, interest rate, exchange rate, and trade openness to the foreign direct investment, meanwhile inflation does not significantly affect the foreign direct investment. These findings hopefully can help the government to make wiser policies to increase the foreign direct investment.

DETERMINAN PENANAMAN MODAL ASING LANGSUNG DI ASEAN

2012 ◽  
Vol 7 (1) ◽  
pp. 75
Author(s):  
Joko Susanto
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Data Model ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Statistical Data ◽  
Regression Equation ◽  
Panel Data Model ◽  
Market Size ◽  
Research Analysis

This research analysis the factors’ that determine the foreign directinvestment (FDI) in ASEAN’s countries especially Indonesia, Malaysia, Philippine and Thailand during 1990-2009. Multinational Enterprises’ (MNE) must decideto choose a locationfor relocating its’ factory by market seeking dan resources seeking strategy. Based on this statement, it can be obtained the regression equation with foreign direct investment is a function of market size, worker’s productivity and infrastructure of road. Statistical data of UNESCAP was used in this research. The regression was base on the panel data model, while the estimation was based on common effects model. This results showthat the market size, worker’s productivity and availability of infrastructure road could be an importance consideration for MNE’s in their choice for FDI.Keywords: foreign direct investment, market size, worker’s productivity, infrastructure of road

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

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.

scholarly journals Foreign Direct Investment, Economic Freedom and Economic Growth: Evidence from Developing Countries

2016 ◽  
Vol 8 (11) ◽  
pp. 200 ◽  
Author(s):  
Md. Shakib Hossain
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Foreign Direct Investment ◽  
Standard Deviation ◽  
Poisson Regression ◽  
Direct Investment ◽  
Economic Freedom ◽  
Random Effect ◽  
Estimating Equation ◽  
Generalized Estimating Equation

<p class="Default">This paper has explores the interplay between economic freedom, foreign direct investment and economic growth using panel data analysis for a sample of 79 developing countries from 1998 to 2014 by considering the level of economic freedom, as provided by the “Heritage Foundation”. Panel unit root, pedroni residual co-integration test, generalized least square (GLS), feasible GLS (FGLS), pooled OLS, random effect, fixed effect, poisson regression, prais-winsten, generalized method of movement (GMM) and generalized estimating equation (GEE) methods have used to estimates the relationship. According to the OLS and generalized method of movement the coefficient implies that a one standard deviation improvement in business freedom, trade freedom, size, investment freedom, property rights, freedom from corruption, labor freedom, financial freedom, fiscal freedom, monetary freedom increases FDI by 21.4%, 15.6%, 21.6%, 17.5%, 11.55, 9.1%, 6.9%, 8.5%, 7.4%, 10.3% and 56.1%, 45.3%, 58.3%, 51.6%, 33.7%, 39.2%, 47.4%, 41.6%, 32.5%, 38.5% points respectively and  for the economic variable ,the coefficient implies that a one standard deviation improvement in GDPG and GDPPC increases FDI by 24.1%, 17.4% and 30.2%, 33.4% points respectively. By using the other method like random effect, fixed effect, poisson regression, prais-winsten and generalized estimating equation (GEE) method explores that economic freedom in the host country is a positive determinants of FDI inflows in developing countries and also the result suggests that foreign direct investment is positively correlated with the economic growth in the host countries.</p>

scholarly journals Towards the attainment of sustainable development goal 7: what determines clean energy accessibility in sub-Saharan Africa?

Green Finance ◽  
2021 ◽  
Vol 3 (3) ◽  
pp. 268-286
Author(s):  
Paul Adjei Kwakwa ◽  
◽  
Frank Adusah-Poku ◽  
Kwame Adjei-Mantey ◽  
◽  
...  
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Poverty Reduction ◽  
Random Effect ◽  
Clean Energy ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Sub Saharan Africa ◽  
Political Regime ◽  
Sub Saharan

<abstract> <p>Access to clean energy is necessary for environmental cleanliness and poverty reduction. That notwithstanding, many in developing countries especially those in sub-Saharan Africa region lack clean energy for their routine domestic activities. This study sought to unravel the factors that influence clean energy accessibility in sub-Saharan Africa region. Clean energy accessibility, specifically access to electricity, and access to clean cooking fuels and technologies, were modeled as a function of income, foreign direct investment, inflation, employment and political regime for a panel of 31 sub-Saharan countries for the period 2000–2015. Regression analysis from fixed effect, random effect and Fully Modified Ordinary Least Squares show that access to clean energy is influenced positively by income, foreign direct investment, political regime and employment while inflation has some negative effect on its accessibility. The policy implications from the findings among other things include that expansion in GDP per capita in the sub-region shall be helpful in increasing accessibility to clean energy. Moreover, strengthening the democratic institutions of countries in the region shall enhance the citizens' accessibility to clean energy. Ensuring sustainable jobs for the citizens is necessary for access clean energy.</p> </abstract>

scholarly journals Allocation of foreign direct investment across brazilian states

2013 ◽  
Vol 43 (2) ◽  
pp. 241-269 ◽  
Author(s):  
Maurício Mesquita Bortoluzzo ◽  
Sergio Naruhiko Sakurai ◽  
Adriana Bruscato Bortoluzzo
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Foreign Investment ◽  
Direct Investment ◽  
Transport Infrastructure ◽  
Market Size ◽  
Consumer Market ◽  
Determining Factors ◽  
Econometric Study

Foreign direct investment (FDI) has become increasingly important for the Brazilian economy: the ratio of FDI inflow to the country's gross domestic product (GDP) increased from a 0.6% average in the 1980's to 2.5% from 2001 to 2010, according to data from UNCTAD. However, there is great inequality in the distribution of this investment among Brazilian federation units. This study aims at investigating the determining factors for the location of foreign direct investment across Brazilian states, based on an econometric study with panel data for the years 1995, 2000 and 2005. The results showed that foreign investment responded positively to consumer market size, quality of labor and transport infrastructure, but negatively to cost of labor and tax burden.

scholarly journals Intellectual Property and Foreign Direct Investment

2019 ◽  
Vol 14 (2) ◽  
pp. 26-32
Author(s):  
Nur Hayati Abd Rahman ◽  
Khairunnisa Abd Samad ◽  
Shahreena Daud ◽  
Zarinah Abu Yazid
Keyword(s):  
Foreign Direct Investment ◽  
Intellectual Property ◽  
Direct Investment ◽  
Random Effect ◽  
Digital Economy ◽  
Intellectual Property Protection ◽  
Annual Data ◽  
New Business ◽  
Asean Countries ◽  
High Level

With help from both domestic and international markets, ASEAN countries are able to catch-up withthe latest economic development if they can sustain high economic growth for a long-period of time. To doso, the resources available in countries such as capital and labors should fully be utilized up to theoptimum level. The capital itself can be in many forms such as investment. Since most of the ASEANcountries are categorized as developing countries, the reliance on foreign direct investment (FDI) as asource of growth is highly needed as it helps the economy to step on a higher stage of economic developmentvia the roles of foreign experts and technological transfer. In ensuring a higher level of investment, there isa need to ensure a high level of intellectual property protection since it assists in promoting invention,innovation and new business development. In opposite, lacking in protection might discourage foreigninvestors to invest in the countries, thus limiting the ability of the countries to grow further. Therefore, theaim of this paper is to examine whether strong intellectual property protection will really help in attractingmore foreign investors to invest in ASEAN-5 countries. Using annual data from 2007 to 2016, panel dataestimation using random effect is employed. It was found that the ASEAN-5 countries should strengthentheir intellectual property protection in order to stimulate higher foreign investments. Nevertheless, inbetween copyright and patents, copyrights protection gives significant effect to the FDI inflows relative tothe latter one. It indicates that the countries are slowly moving out from the production-based economy andcatching-up towards a digital economy. Keywords: ASEAN-5, foreign direct investment, intellectual property protection, digital economy, copyrights

scholarly journals Labor Productivity and Foreign Direct Investment in the Indonesian Manufacturing Sector

2019 ◽  
Vol 8 (1) ◽  
pp. 9-22 ◽  
Author(s):  
Luhur Selo Baskoro ◽  
Yonsuke Hara ◽  
Yoshihiro Otsuji
Keyword(s):  
Foreign Direct Investment ◽  
Labor Productivity ◽  
Direct Investment ◽  
Social Protection ◽  
Manufacturing Sector ◽  
Random Effect ◽  
Effect Analysis ◽  
Positive Externalities ◽  
Random Effect Analysis

This paper investigates the determinants of foreign direct investment (FDI) inflow, focusing on the effect of labor productivity in the Indonesian manufacturing sector. Indonesia has the advantage of abundant labor supply in attracting FDI to bring positive externalities to its economy. Based on this background, this paper is aimed to study and to improve FDI inflow through a random effect analysis of 19 manufacturing industries from 2001 to 2014. The empirical result shows that labor productivity, wages, and export have become significant factors that attract FDI. FDI inflow in this sector tends to target non-labor industries. For the labor-intensive industries, the primary strategy is to increase labor quality through improvement in education, training, internship program, and worker certification. Improving research and development climate, and maintaining the quality of labor through health and social protection regulation can attain improvement in non-labor intensive industries.

scholarly journals Analisis Ekspansi Gojek di Singapura Tahun 2018 Melalui Foreign Direct Investment (FDI)

2020 ◽  
Vol 3 (3) ◽  
pp. 262
Author(s):  
Al Dina Maulidya ◽  
Bagas Prasetyo ◽  
Marsha Salsabilla ◽  
Rizal Alif Prakasya
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Market Size

Gojek melakukan ekspansi ke sejumlah negara di kawasan Asia Tenggara pada tahun 2018. Salah satu negara tersebut ialah Singapura, ekspansi ini dinilai cukup berani. Singapura merupakan satu-satunya negara maju di Asia Tenggara, sekaligus sebagai negara asal raksasa ride hailing saingan Gojek, yakni Grab. Untuk itu, penelitian ini bertujuan untuk mengetahui faktor-faktor yang mempengaruhi ekspansi Gojek di Singapura tahun 2018. Penelitian ini merupakan penelitian deskriptif dengan teknis analisa kualitatif, dan mengumpulkan data menggunakan studi kepustakaan. Penelitian ini menggunakan konsep Foreign Direct investment (FDI), untuk menetapkan enam faktor penentu yang mempengaruhi ekspansi Gojek di Singapura. Hasil dari penelitian ini menunjukkan, jika setidaknya terdapat enam faktor penentu ekspansi Gojek di Singapura. Enam faktor tersebut ialah, pertumbuhan market size di Singapura, keterbukaan negara Singapura, rendahnya tingkat inflasi di Singapura, tingkat korupsi yang cenderung rendah di Singapura, adanya kebijakan pemerintah yang mendukung penanaman modal asing di Singapura, serta stabilitas politik yang tinggi di Singapura.

Locational Determinants of Foreign Direct Investment in the Vietnamese Economy

2019 ◽  
pp. 422-459
Author(s):  
Ngoc Le ◽  
Xiaoqing Li ◽  
Andrey Yukhanaev
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Quantitative Research ◽  
Global Financial Crisis ◽  
Secondary Data ◽  
Labor Cost ◽  
Policy Implications ◽  
Fdi Inflows ◽  
Rapid Economic Growth ◽  
The Global Financial Crisis

This chapter investigates the determinants of inward Foreign Direct Investment (FDI) in the Vietnamese economy and their connection to the rapid economic growth the country has experienced. Using the concepts drawn from the extant Ownership-Location-Internalization (OLI) paradigm and Institutional-Based View (IBV) literature, and adopting a quantitative research with the application of secondary data analysis, the study found seven significant locational factors determining FDI inflows into the Vietnamese economy, such as business freedom, market size, labor cost, trade freedom level, inflation rate, human capital, and the effectiveness of property rights. Political risk, monetary freedom, corruption, the country's WTO accession, and the global financial crisis are found to be irrelevant to the inbound investments in the modern economy. A macro-level account and the policy implications are suggested for the promotion of FDI inflows into Vietnam to ensure the country's continuous and sustainable economic development.

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