scholarly journals Dynamic of Foreign Direct Investment (FDI) Relationship, Macroeconomic Stability and Return of Shares Index in Four Asen Countries

2021 ◽  
Vol 9 (1) ◽  
pp. 38-55
Author(s):  
Fisit Suharti ◽  
M. Zidny Nafi' Hasbi
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Capital Market ◽  
Direct Investment ◽  
Market Integration ◽  
Stock Index ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Asean Countries

Southeast Asian countries are looking forward to capital market integration. The presence of this momentum requires stable economic conditions in each country and an attractive capital market. This momentum is also an opportunity for the Islamic capital market to be further developed in this region. This study aims to examine the effects of Foreign Direct Investment (FDI) and macroeconomic variables, namely economic growth, inflation, reference interest rates and exchange rates on the return of the Islamic stock index in four ASEAN countries, namely Indonesia, Malaysia, Thailand and Singapore. The research period since four quarter of 2006 until the first quarter of 2020. The method used in empirical evidence in this study is the Autoregressive Distributed Lag Bounds Testing Approach (ARDL). This study found a long-term co-integration relationship in all research object countries. In terms of long-term relationships and short-term dynamics, this study finds variations in yield and direction coefficients in 4 ASEAN countries. The speed of readjustment of balance in case of shocks, respectively, is 44.7%, 65.4%, 43.5% and 50.0% per month.

scholarly journals The Relationship between International Trade and Economic Growth

2019 ◽  
Vol 1 (02) ◽  
pp. 112-123
Author(s):  
Putri Dewi Purnama ◽  
Ming Hung Yao
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
International Trade ◽  
Exchange Rate ◽  
Direct Investment ◽  
Positive Impact ◽  
The Exchange Rate ◽  
Asean Countries ◽  
The Relationship

The aim of this study is to find the relationship between international trade and economic growth in ASEAN countries. Three independent variables used to measure the economic growth include international trade, the exchange rate, and foreign direct investment. This study employs a pedroni panel cointegration test to examine the data from 2004 to 2015. The results show that there is a long term cointegrated relationship between international trade and economic growth in the ASEAN countries. International trade and foreign direct investment also have a long term, positive impact on economic growth. Meanwhile, the exchange rate also has a long term, negative influence on the economic growth. In addition, there is an indirect relationship and bidirectional causalities between the GDP and international trade, as well as between the GDP and the exchange rate. On the other hand, there is a direct relationship and a bidirectional causality between international trade and the exchange rate. The FDI leads GDP, international trade, and exchange rates. Our results suggest that international trade must be supported by government policies that aim to enhance the financing of new investment for economic growth.

scholarly journals The Use of Auto-Regressive Distributed Lag Method in Investigating The Impact of Interest Rate on Foreign Direct Investment in Yemen for the Period 1990-2018

2020 ◽  
Vol 26 (123) ◽  
pp. 145-157
Author(s):  
Saif Sallam Alhakimi
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rate ◽  
Interest Rates ◽  
Direct Investment ◽  
Inflation Rate ◽  
Trade Openness ◽  
Fdi Inflows ◽  
Distributed Lag ◽  
Auto Regressive ◽  
The Impact

 Foreign direct investment has seen increasing interest worldwide, especially in developing economies. However, statistics have shown that Yemen received fluctuating FDI inflows during the period under study. Against this background, this research seeks to determine the relationship and impact of interest rates on FDI flows. The study also found other determinants that greatly affected FDI inflows in Yemen for the period 1990-2018. Study data collected from the World Bank and International Monetary Fund databases. It also ensured that the time series were made balanced and interconnected, and then the Auto Regressive Distributed Lag method used in the analysis. The results showed that the interest rates and inflation rate harmed FDI flows and, therefore, could not be used for policymaking purposes. The research also discovered that GDP growth and trade openness are the main determinants of foreign direct investment in Yemen. Trade openness policies should be encouraged, and GDP growth facilitated if the economy is to achieve long-term FDI flows. Purpose –The purpose of the paper is to discover the impact of interest rate on foreign direct investment with a combination of the exchange rate, inflation, gross domestic product, and trade openness. Design/methodology/approach – The paper implements the Auto Regressive Distributed Lag (ARDL)-Bounds testing approach to analyze maintaining the time series properties in terms of stationarity. Findings – The results indicate that there is a long-run equilibrium between the Foreign Direct Investment and the explanatory variables. Furthermore, the significant factors influencing, positively, FDI in Yemen are Growth domestic product, Exchange rate, and Trade openness. In contrast, both the Interest rate and Inflation rate have a substantial negative impact on Foreign Direct Investment. Practical implications – Policymakers in Yemen advised reconsidering many of the general state policies, including investment policies, financial and administrative governance, and monetary policy that focuses on maintaining an adequate interest rate and reduce the rate of inflation. Originality/value – As for the case of Yemen, this the first study empirically explores the impact of interest rate and the foreign direct investment using the Auto Regressive Distributed Lag method aiming for more reliable results.

scholarly journals ANALISIS PENGARUH VARIABEL MAKRO EKONOMI TERHADAP INVESTASI ASING LANGSUNG (STUDY KASUS CHINA-INDONESIA).

2017 ◽  
Vol 6 (2) ◽  
pp. 103
Author(s):  
Ririn Martini Rezki ◽  
Yeniwati Yeniwati ◽  
Mike Triani
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rates ◽  
Direct Investment ◽  
Time Series Data ◽  
Least Square ◽  
Series Data ◽  
Short Term

This research to analyze the influence of macro economic variables impact on Chinese Foreign Direct Investment in Indonesia. The influence of China’s economic growth, Indonesia’s economic growth, interest rates, inflation and exchange rates against Foreign Direct Investment (FDI) China in Indonesia in the long term and short term. Type of this research is descriptive research, the secondary data use form time series data, from 2001Q1 – 2016Q4, taken  from agencies and related institution, the analysis using the Ordinary Least Square (OLS) and Error Correction Model (ECM) to see the influence in a long term and impact in the short term. This research show that Indonesia’s economic growth of China’s economic growth and inflation is have a significant effect in the long term Chinas’s FDI in Indonesia. Variable economic growth of Indonesia’s, interest rates, inflation, exchange rate in the short term influence China’s Foreign Direct Investment in Indonesia. How ever in the long term interest rates and exchange rate do not influence significantly, to China’s FDI in Indonesia.

scholarly journals The Real Exchange Rate-Foreign Direct Investment Controversy in South Africa: An Application of ARDL Approach

2017 ◽  
Vol 9 (11) ◽  
pp. 207
Author(s):  
Ahmed Mohamed Dahir ◽  
Fuaziah Mahat ◽  
A. N. Bany-Ariffin ◽  
Nazrul Hisyam Ab Razak
Keyword(s):  
South Africa ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Direct Investment ◽  
Trade Openness ◽  
Market Size ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Long Run

This paper examines the relationship between real exchange rate and foreign direct investment. We apply autoregressive distributed lag (ARDL) bounds testing method to estimate short and long-run relationships between the series in South Africa over the period of 1987-2016. The results reveal long-run cointegration relationships among variables are confirmed, implying real exchange rate, domestic market size stimulate the foreign direct investment in the long run. Furthermore, there is significant Granger unidirectional causality foreign direct investment to real exchange rate in short and long run and from market size to trade openness in a short run. This finding further suggests that the exchange rate instability are likely to be substantially harmful to a positive effect of FDI and should be avoided in South Africa.

scholarly journals A Different View on ASEAN Capital Market Integration

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 141
Author(s):  
Robiyanto Robiyanto ◽  
Budi Frensidy ◽  
Ignatius Roni Setyawan ◽  
Andrian Dolfriandra Huruta
Keyword(s):  
Capital Markets ◽  
Capital Market ◽  
Stock Price ◽  
Market Integration ◽  
Price Index ◽  
Stock Exchange ◽  
Capital Market Integration ◽  
Asean Countries ◽  
Exchange Data

Capital market integration has become an interesting research topic nowadays. Many studies have tried to explain this phenomenon using various methods. Here, we used sophisticated methods to explain capital market integration. This study aims to scrutinize the Association of Southeast Asian Nations (ASEAN) capital market integration. This study hopefully can enrich the different views regarding the capital market integration and fill the gap left by previous studies. The data used were the stock price index of the monthly closing data of the capital markets in ASEAN countries during the period of January 1999 to December 2020, obtained from Bloomberg and the Indonesia Stock Exchange. Data in this study were analyzed using the wavelet method. The results indicate that there is a long-term integration in the capital markets of ASEAN countries, and the highest level of integration was in the period during and about a year after the global crisis. Using the spectrum analysis, the results show that during period from 2008 to 2010, the level of integration reached its highest level.

scholarly journals ANALISIS PENGARUH VARIABEL MAKRO EKONOMI TERHADAP KINERJA PASAR MODAL SYARIAH DI INDONESIA

Jurnal Ecogen ◽  
2019 ◽  
Vol 1 (3) ◽  
pp. 712
Author(s):  
Rahmi Wulandari ◽  
Yeniwati Yeniwati ◽  
Dewi Zaini Putri
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rates ◽  
Interest Rates ◽  
Least Squares ◽  
Capital Market ◽  
Stock Price ◽  
Direct Investment ◽  
Ordinary Least Squares ◽  
The Government ◽  
Inductive Analysis

This research aims to find out and analyze the influence of the peformance islamic capital market on inflation, exchange rates, interest rates and foreign direct investment in Indonesia. The type of research used is descriptive and associative research. The data in this study are secondary data from 2007-2016 Q1-Q4 with the quarter one to quarter four documentation and library data collection techniques.. Data analysis used is descriptive analysis and inductive analysis. In inductive analysis using the Ordinary least squares approach, there are several tests, namely: (1) Multicollinearity Test; (2) Autocorrelation Test; (3) Determination of heteroscedasticity; (4) Normality Test; (5) Multiple Leinear Analysis;Research results show that: (1) There is no significant effect of inflation on the islamic capital market; (2) There is an influence between the exchange rates that affect the islamic capital market; (3) There is no influence between interest rates (SBI) on the islamic capital market; (4) there is ian influence of foreign direct investment that affect the islamic capital market. Based on the results of this study it is suggested that the government should pay more attention to the condition of stock price movements in Indonesia Keywords: The peformance islamic capital market, inflasi, niliai tukar, suku bunga,, Foreign Direct Investment, Ordinary Least Squares  (OLS).

scholarly journals DINAMIKA HUBUNGAN FOREIGN DIRECT INVESTMENT (FDI), MAKROEKONOMI DAN RETURN INDEKS SAHAM SYARIAH DI EMPAT NEGARA ASEAN

2021 ◽  
Vol 8 (2) ◽  
pp. 322-365
Author(s):  
Nur Fitriyanto ◽  
Misnen Ardiansyah ◽  
Muhammad Ghafur Wibowo ◽  
Ibi Satibi
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Bounds Testing ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Bounds Testing Approach ◽  
Testing Approach

Negara-negara kawasan Asia Tenggara tengah menyongsong integrasi pasar modal. Kehadiran momentum itu, dibutuhkan kondisi ekonomi masing-masing negara yang stabil dan pasar modal yang menarik. Momentum ini juga merupakan  kesempatan pasar modal syariah untuk lebih dikembangkan di kawasan ini. Penelitian ini bertujuan untuk menguji pengaruh Foreign Direct Investment (FDI) dan variabel ekonomi makro yakni pertumbuhan ekonomi, inflasi, suku bunga acuan dan nilai tukar terhadap return indeks saham syariah di empat negara ASEAN yaitu Indonesia, Malaysia, Thailand dan Singapura. Periode penelitian sejak kuartal IV tahun 2006 sampai dengan kuartal I tahun 2020. Metode yang digunakan dalam pembuktian empiris pada penelitian ini adalah Autoregressive Distributed Lag Bounds Testing Approach (ARDL). Penelitian ini menemukan hubungan kointegrasi jangka panjang pada semua negara objek penelitian. Dalam hubungan jangka panjang dan dinamika jangka pendek, penelitian ini menemukan adanya variasi hasil dan arah koefisien di 4 negara ASEAN. Kecepatan penyesuaian kembali keseimbangan jika terjadi goncangan berturut-turut Indonesia, Malaysia, Thailand dan Singapura adalah 44.7%, 65.4%, 43.5% dan 50.0% per bulannya.

scholarly journals Determinants of foreign direct investment in the Zimbabwean Mining Sector

2021 ◽  
Vol 14 (1) ◽  
Author(s):  
Sanderson Abel ◽  
Julius Mukarati ◽  
Courage Mutonhori ◽  
Pierre Le Roux
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Direct Investment ◽  
Foreign Currency ◽  
New Technology ◽  
Mining Industry ◽  
Mining Sector ◽  
Distributed Lag ◽  
Wage Rates ◽  
Determinants Of Fdi

Orientation: The mining industry being the main source of foreign currency for economy is the backbone of the Zimbabwean economy. The performance of the sector has been dwindling of late. The downturn has been attributed to outdated equipment, lack of foreign currency to import modern equipment, expensive new technology and general macroeconomic problems.Research Purpose: Given the problems being faced by the sector, this article investigated the determinants of foreign direct investment (FDI) into the mining sector (MS).Motivation for the study: Given the mining sector’s contribution to the economy, understanding what motivates corporates to invest into the sector is of interest to the policy makers. The decline in investment is a cause of concern.Research approach and method: The study employed the autoregressive distributed lag (ARDL) method to evaluate the determinants of FDI into the Zimbabwean MS.Main Findings: The results show that FDI in the MS is driven by gross domestic product (GDP), wage rates, inflation, interest rates and openness in the long term. In the short run, GDP, wage rates, inflation, interest rates and openness have a significant effect on FDI into the MS.Practical implications: This study recommends that government should put in place pro-growth policies in order to attract more foreign investors. The monetary policy should ensure interest rates are maintained very low to allow local resources to complement FDI.Contribution: The study contributes to the literature on determinants of FDI in the mining sector.

scholarly journals GONCANGAN FAKTOR INTERNAL DAN EKSTERNAL TERHADAP INVESTASI ASING LANGSUNG DI INDONESIA

2017 ◽  
Vol 6 (2) ◽  
pp. 149
Author(s):  
Yuliarti Yuliarti ◽  
Hasdi Aimon ◽  
Melti Roza Adry
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rates ◽  
Direct Investment ◽  
External Factors ◽  
Series Data ◽  
Short Term ◽  
Economic Openness

The purpose of this research to analyze the long-term effects and short-term shocks of internal factors (inflation, economic growth, Indonesian interest rates) and external factors (economic openness, foreign interest rates, exchange rates) to foreign direct investment in Indonesia. The effects and impacts of these shocks will form the basis for decision-making and policy-setting in achieving optimal economic growth. This study uses the Ordinary Least Square (OLS) and Error Correction Model (ECM) method to see the long-term and short-term effects of internal and external factors on foreign direct investment in Indonesia. The data used time series data from fisrt quarterly in 2000 to fourth quarterly in 2016. In more detail, ECM used to analyze short-term shocks. The results show that in the short term the internal factor of inflation caused shocks to foreign direct investment and in the long run, the variable of inflation and economic growth have a significant effect on foreign direct investment. External factors such as: economic openness, foreign interest rate and exchange rate in the short run cause shocks to foreign direct investment, and in the long term the openness of economy and exchange rate have a significant influence.

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