scholarly journals Trade flow of manufacturing sector and foreign direct investment in ASEAN economic integration: the gravity model of trade

2021 ◽  
Vol 8 (6) ◽  
pp. 619-630
Author(s):  
Diah Wahyuningsih
Keyword(s):  
Foreign Direct Investment ◽  
Economic Integration ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
Trade Flow ◽  
Trade Flows ◽  
Asean Member ◽  
Panel Data Regression ◽  
Data Regression ◽  
Distance Variable

This study aims to determine the effects of ASEAN economic integration on the manufacturing sector's trade flow and foreign direct investment. This study using panel data regression. The results show that ASEAN economic integration affects trade in the manufacturing sector and foreign direct investment (FDI) in ASEAN member countries. The tariff elimination policy increased trade flows in the manufacturing sector and foreign direct investment. The variable of GDP has a positive and significant effect on the manufacturing sector's trade flows and foreign direct investment. Exchange rate variables have a negative and significant effect on trade flows in the manufacturing sector and foreign direct investment. Meanwhile, the distance variable negatively affects trade in the manufacturing sector, but it does not affect foreign direct investment.

ASEAN’s TRADE AND FOREIGN DIRECT INVESTMENT: LONG-TERM CHALLENGES FOR ECONOMIC INTEGRATION

2016 ◽  
Vol 62 (03) ◽  
pp. 643-680 ◽  
Author(s):  
MASAHIRO KAWAI ◽  
KANDA NAKNOI
Keyword(s):  
Foreign Direct Investment ◽  
Multinational Corporations ◽  
Free Trade ◽  
Economic Integration ◽  
Direct Investment ◽  
Free Trade Area ◽  
Trade Flows ◽  
Asia Pacific ◽  
Asean Member

This paper explores the long-term challenges for economic integration of the Association of Southeast Asian Nations (ASEAN) through trade and foreign direct investment (FDI). The region has emerged as an important production base for global multinational corporations by joining East Asia’s supply chains. While proceeding to establish the ASEAN Economic Community (AEC) by the end of 2015, ASEAN has also forged five major free trade agreements (FTAs) with its dialogue partners (China, India, Japan, Republic of Korea, and Australia–New Zealand) and is currently negotiating the Regional Comprehensive Economic Partnership. In addition, four ASEAN member states have completed Trans-Pacific Partnership negotiations. Econometric evidence suggests that (i) trade flows and inward FDI mutually reinforce each other, i.e., an increase in trade flows stimulates inward FDI and vice versa; (ii) a larger market tends to attract more inward FDI; (iii) FTAs tend to help stimulate inward FDI; and (iv) strong institutions, good physical infrastructure, and low costs of doing business are critical in boosting inward FDI. The paper suggests that in the long run it is ASEAN’s interest to further integrate itself with the rest of Asia and the world (through a Free Trade Area of the Asia-Pacific and an Asia–Europe FTA), while substantially deepening its internal integration (by moving from the AEC to a customs and economic union) and thereby maintaining ASEAN centrality.

scholarly journals Migration und Geld: Können Remittances den Wohlstand eines Landes fördern?

2018 ◽  
Vol 87 (3) ◽  
pp. 165-179
Author(s):  
Marcus Deetz ◽  
Anna Ammon ◽  
Neele Döpkens
Keyword(s):  
Foreign Direct Investment ◽  
Panel Data ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Home Country ◽  
Positive Influence ◽  
Domestic Product ◽  
Control Variables ◽  
Panel Data Regression ◽  
Data Regression

Zusammenfassung: Haben Remittances, also der Geldtransfer von Migrantinnen und Migranten zur Unterstützung der Familien im Heimatland, einen positiven Einfluss auf den Wohlstand eines Landes? Hierzu können die empirischen Befunde wie folgt zusammengefasst werden: Bei den durchgeführten Paneldatenregressionen von Remittances pro Person auf das Bruttoinlandsprodukt pro Einwohner, wobei die Kontrollvariablen Arbeitslosigkeit, Export, ausländische Direktinvestitionen, Bruttoinvestitionen sowie der Einfluss der Finanzkrise 2008–2009 berücksichtigt wurden, ist der Koeffizient der Variablen Remittances pro Person mit einer Höhe von 0,026 statistisch hochsignifikant. Remittances haben demnach einen positiven Einfluss auf den Wohlstand eines Landes, wenn dieser in Bruttoinlandsprodukt pro Einwohner gemessen wird. Auch die Ergebnisse der Robustheitsanalysen haben den positiven Zusammenhang bestätigt, der auch bei Veränderung von Kontrollvariablen statistisch signifikant bleibt. Summary: Do remittances, that is, the transfer of money from migrants to support families in their home country, have a positive influence on the prosperity of a country? The empirical findings can be summarized as follows: In the panel data regression of remittances per person to the gross domestic product per inhabitant, whereby the control variables unemployment, export, foreign direct investment, gross investment and the influence of the financial crisis 2008–2009 were taken into account, the coefficient of the variable remittances per person is statistically highly significant at 0.026. Thus, remittances have a positive influence on a country’s prosperity when measured in gross domestic product per inhabitant. The results of the robustness analyses also confirmed the positive correlation, which remains statistically significant even if control variables are changed.

scholarly journals IMPACT OF ROAD INFRASTRUCTURE, EDUCATION, HEALTH AND FOREIGN DIRECT INVESTMENT TOWARDS INDONESIA’S ECONOMIC GROWTH: LEVEL OF 33 PROVINCES

2019 ◽  
Vol 3 (02) ◽  
pp. 35
Author(s):  
Muryani Muryani ◽  
Agna Amalia
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Regression Method ◽  
Regression Estimation ◽  
Road Infrastructure ◽  
Economy Growth ◽  
Panel Data Regression ◽  
Data Regression

<p><em>Economic growth is the most important factor to gain successful long-term development. The economy growth factors are road infrastructure, education, health, and foreign direct investment. This study analyzes the influence of road infrastructure, education, health and foreign direct investment on economic growth of 33 provinces in Indonesia in 2010-2016. This study uses panel data regression method and uses STATA 14 software. The regression estimation results showed that simultaneously road infrastructure, education, health, and foreign direct investment had an effect on economic growth of 33 provinces in Indonesia, while partially (individually) foreign direct investment doesn’t have significant effect.</em><em></em></p><pre><strong><em>JEL Classdification: </em></strong><em>H51, H52, H54</em></pre><pre><strong><em>Keywords</em></strong><strong><em>: </em></strong><em>Economic Growth, Education, Foreign Direct Investment, Health, Road Infrastructure</em></pre>

scholarly journals Nexus of Foreign Direct Investment, Domestic Investment, and Manufacturing Industry Value Added in Indonesia

2019 ◽  
Vol 8 (1) ◽  
pp. 1-8
Author(s):  
Horas Djulius ◽  
Choi Wongyu ◽  
J. Juanim ◽  
Raeni Dwi Santy
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Industry ◽  
Value Added ◽  
Domestic Investment ◽  
Panel Data Regression ◽  
Data Regression ◽  
Comparison Results ◽  
Industrial Samples ◽  
Capital Intensive

The development of the manufacturing industry is one of the standards for Indonesia's development as a developing country. Domestic investment (DI) and foreign direct investment (FDI) can meet investment needs in this industry. This paper focuses on the nexus of the two types of investment in meeting investment needs in the manufacturing industry and the influence of those investments in relatively capital-intensive and relatively labor-intensive industrial groups. The aim is to evaluate the role of both types of investments and their benefits to the economy not only to the value-added but also in transferring technology and knowledge spillover from FDI to DI. The panel data regression was first to do to observe the differences between groups of relatively capital-intensive industrial samples and relatively labor-intensive industrial samples. The comparison results show that there are significant differences between the two industry groups so that it can be regressed on these two sample types, apart from the regression of the overall sample. The overall sample found that both FDI and DI influence the value-added of the manufacturing industry. 

scholarly journals Political Stability and FDI in OIC Countries

2011 ◽  
Vol 1 (1) ◽  
pp. 18-23 ◽  
Author(s):  
Ahmad Jafari Samimi ◽  
Reza Moghaddasi . ◽  
Khosro Azizi .
Keyword(s):  
Foreign Direct Investment ◽  
Regression Analysis ◽  
Direct Investment ◽  
Detrimental Effect ◽  
Positive Impact ◽  
Political Stability ◽  
Panel Data Regression ◽  
Data Regression ◽  
The Impact ◽  
Do So

The purpose of the present paper is to investigate the impact of Political stability on foreign direct investment (FDI) revenues in Organization of Islamic Conference (OIC) countries. To do so, we have concentrated on a sample of 16 countries for which the necessary data were available for the period 2002-2009. We have used a panel data regression analysis. Our empirical results indicate that Population, openness and gross domestic product (GDP) have positive impact on FDI, whereas Political Stability has a detrimental effect on FDI in OIC countries.

scholarly journals Determinants Comparative Advantage of Non-Oil Export 34 Provinces in Indonesia

2021 ◽  
Vol 2 (3) ◽  
pp. 98-106
Author(s):  
Irsan Hardi ◽  
Taufiq Carnegie Dawood ◽  
Putri Bintusy Syathi
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Panel Data ◽  
Comparative Advantage ◽  
Direct Investment ◽  
Government Expenditure ◽  
Income Disparity ◽  
Panel Data Regression ◽  
Data Regression ◽  
Oil Export

In spite of the country’s export activities constantly increase every year, based on the latest report Indonesia still sits at number 28th in the world's top export countries, consider Indonesia as one of the most populated nations and its rich natural resources. There is so much research in the literature about this issue, but to the author’s knowledge, there is still a lack of studies that analyze the performance of non-oil export comparative advantage between provinces in Indonesia instead of between its commodities. The purpose of this research is (1st) to compare non-oil exports comparative advantage between 34 provinces in Indonesia and (2nd) to prove the effect of chosen factors which are a foreign direct investment, local direct investment, inflation, interest rate, exchange rate, population, labor, minimum wage, education, income disparity, regional GDP, government expenditure, and GDP of importing country toward provinces comparative advantage of non-oil export. This research using provinces panel data years 2010-2019. The method of this study is Revealed Comparative Advantage (RCA) index and Trade Balance Index (TBI) to unveil non-oil export comparative advantage between 34 provinces in Indonesia and panel data regression to estimate the impact of determinant factors. The result of comparative advantage index estimation shows that 24 provinces have a comparative advantage based on the RCA index approach and 32 provinces have a comparative advantage based on the TBI approach on non-oil export activities year 2010-2019. The result of panel data regression found that 9 out of 13 determinant variables had a significant effect on the RCA index namely foreign direct investment, local direct investment, exchange rate, population, labor, minimum wage, income disparity, regional GDP, and government expenditure. Then 6 out of 13 determinant variables had a significant effect on TBI which are a local direct investment, interest rate, exchange rate, education, income disparity, and regional GDP.

India’s vaccine diplomacy brings money and influence

2021 ◽  
Keyword(s):  
United States ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Manufacturing Sector ◽  
The United States ◽  
Active Pharmaceutical Ingredients ◽  
Content Type ◽  
Pharmaceutical Ingredients ◽  
The World

Significance Last week, its partners in the ‘Quad’ grouping -- the United States, Japan and Australia -- agreed to help increase its vaccine manufacturing and exporting capacity. Each of the Quad members is wary of China, which like India is gifting and selling coronavirus jabs around the world. Impacts India’s manufacturing sector will attract more foreign direct investment. Greater cooperation over supply chains will help strengthen India-Australia ties. Indian pharma will in the long term aim to ease dependence on imports of active pharmaceutical ingredients from China.

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