scholarly journals DAMPAK KEBIJAKAN TAX HOLIDAY PADA ALIRAN MASUK FDI INDUSTRI PIONIR DI INDONESIA

Bina Ekonomi ◽  
2020 ◽  
Vol 22 (2) ◽  
pp. 181-198
Author(s):  
Muhammad Tri Karimullah
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Direct Investment ◽  
Descriptive Analysis ◽  
Economic Openness ◽  
Factors Influencing ◽  
Per Capita ◽  
Loan Interest Rates ◽  
The Stability ◽  
Tax Holiday

ABSTRACTIn 2011, the Indonesian government issued a Tax Holiday policy as an incentive to attract investment. However, the policy is still considered not optimal in increasing FDI realization in Indonesian pioneer industry. This study aims to analyze the influence of the Tax Holiday policy in increasing the realization of direct investment in Indonesian pioneer industry; as well as to investigate other factors influencing the inflow of Foreign Direct Investment (FDI) in the industry. The results of descriptive analysis and VECM show that Tax Holiday policy has increased the realization of direct investment of pioneer industries in 2012 and 2014 by 5.17% and 4.66%, respectively. In addition, there are other factors that influence the FDI inflow to the Indonesian pioneer industry, namely: GDP, economic openness, labor force participation, loan interest rates, exchange rates, and per-capita GDP. Maintaining the stability of these factors is important to support Tax Holiday's policy in increasing direct investment activities in Indonesia pioneer industry.Keywords: tax holiday; Foreign Direct Investment; Indonesian pioneer industry

scholarly journals DETERMINAN ALIRAN FOREIGN DIRECT INVESTMENT DI INDONESIA (PENDEKATAN MODEL DUNNING)

Media Trend ◽  
2016 ◽  
Vol 11 (2) ◽  
pp. 141
Author(s):  
Claudia TeziaJanuarita Putri ◽  
Regina Niken Wilantari
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Descriptive Analysis ◽  
Capital Inflow ◽  
Economic Shocks ◽  
Short Term ◽  
Economic Openness ◽  
Correction Model ◽  
Investment Opportunities

<p><em>Traffic capital across countries is one of  investment opportunities from domestic and abroad to stimulate the economic growth  of developing countries</em><em>. Compared to other forms of capital, Foreign Direct Investment is the flow of capital is long-term and relatively not as vulnerable to economic shocks. The aim of this study is to see the performance of FDI movement as a capital inflow in Indonesia and to explores whether factors that affect FDI using Dunning’s ecletic model. </em><em>This study focused on two basic analysis, descriptive analysis and quantitative analysis using the Error Correction Model (ECM). </em><em>The results of short-term ECM estimate shows that FDI is influenced by inflation and the degree of economic openness. Furthermore, the result in the long term ECM estimate show that only variable that infrastructure does not significantly affect the movement of FDI in Indonesia. </em></p>

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.

scholarly journals On Foreign Direct Investment from the ASEAN-8 Countries: A Panel Data Estimation

2022 ◽  
Vol 19 ◽  
pp. 150-160
Author(s):  
Indra Suhendra ◽  
Navik Istikomah ◽  
Cep Jandi Anwar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Panel Data ◽  
Interest Rates ◽  
Direct Investment ◽  
Capital Flight ◽  
Panel Data Estimation ◽  
The Exchange Rate ◽  
Loan Interest Rates

This paper examines how capital flight, loan interest rates, inflation, exchange rates and economic growth influence foreign direct investment in the ASEAN-8 countries. We apply fixed effect estimation to panel data for data belonging to eight countries from the period 1994 to 2018. The results show that capital flight and economic growth have a positive and significant effect on foreign direct investment. An increase in capital flight, capital retain from sources of funds which greater than the use of funds, has encouraged foreign direct investment to increase. Furthermore, increased economic growth has stimulated foreign direct investment. We find that an increase in loan interest rate (SIBOR), inflation and depreciation of the exchange rate triggers a significant decline in foreign direct investment. This finding implies that capital retention from capital flight and economic growth are the main factors that create an increase in foreign direct investment in the ASEAN-8 countries. Meanwhile, loan interest rates (SIBOR), inflation and depreciation of the exchange rate are the risk factors that investors need to consider when investing in those particular countries. This paper is useful for policy makers in the ASEAN-8 countries to consider these five variables, as the important factors that significantly influence foreign direct investment in the ASEAN-8 countries.

scholarly journals Illicit financial flows and foreign direct investment in developing countries

2016 ◽  
Vol 6 (4) ◽  
pp. 442-447
Author(s):  
Emmanuel Innocents Edoun ◽  
Alexandre Essome Dipita ◽  
Dikgang Motsepe
Keyword(s):  
Foreign Direct Investment ◽  
Interest Rates ◽  
Tax Evasion ◽  
Local Governments ◽  
Direct Investment ◽  
Good Governance ◽  
Transfer Pricing ◽  
Developed Countries ◽  
Financial Flows ◽  
Illicit Financial Flows

Africa is facing a number of challenges that are negatively affecting socio-economic development at all levels of governments and local governments are expected to play a leading role for Africa’s development. One of these challenges are illicit financial flows that are perceived by many as a crime against Africa’s transformation. The continent is losing billions of dollars every year because of tax evasion, corruption and inappropriate transfer pricing and maladministration. With tax being one of Africa’s main sources of revenue, current and past researches revealed that, illicit financial flows (IFFs) cripple African Governments tax base as a results of capital outflows and lack of good governance. This situation obviously is a challenge for Africa’s development as governments struggle to finance structuring projects and this in turn compels these governments to seek funds from international organisations at very high interest rates. It is also important to reveal that Foreign Direct Investment (FDI) rapidly grew after the Second World War with the intention to maximize profit on investment in less developed countries and specifically in the African continent. In competing in Africa, most multinationals main objective is to pay less tax, make extensive profits and transfer the proceeds to their country of origin. This subsequently gave rise to illicit financial flows in Africa where the continent is losing billions of dollars. Past studies equally revealed that, Africa’s revenue could increase between 55 and 65%, if appropriate mechanisms of monitoring the flows were in place. This study therefore is based on the premise that, tax evasion, illicit financial flows, corruption and abusive transfers pricing are all factors that affect Africa’s development. Using appropriate method of inquiry, this study wants to demonstrate the presence of FDI’s in Africa as a modus operandi behind tax evasion. It also using the “Appropriability Theory” to explain the rationale for FDI in Africa.

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.

Film Production And Economic Performance: Should South Africa Invest In Movies?

2021 ◽  
Vol 4 (2) ◽  
pp. 125-144
Author(s):  
Andrew Phiri ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Economic Performance ◽  
Government Spending ◽  
Capita Income ◽  
Direct Investment ◽  
Film Production ◽  
Domestic Investment ◽  
Per Capita Income ◽  
Long Run ◽  
Per Capita

The movie industry is increasingly recognised as a possible avenue for improving economic performance. This study focuses on film production and its influence on South African economic growth (per capita income and employment between 1970 and 2020). Our autoregressive lag distributive (ARDL) estimates on a loglinearised endogenous growth model augmented with creative capital indicate that the production of movies has no significant effects on long-run GDP growth, per capita GDP and employment. The baseline regressions find a short-run positive and significant influence of film production on per capita income and are devoid of long-run effects. However, re-estimating the regressions with interactive terms between movie production and i) government spending ii) foreign direct investment, improve the significance of film regression coefficients which all turn positive and significant, for government spending, and negative for foreign direct investment. Our results indicate that foreign investment crowds out domestic investment whilst government investment in movies is growth-enhancing.

On Some Aspects of State-Owned Enterprises' Foreign Direct Investments (SOEs' FDI)

2017 ◽  
pp. 118-140 ◽  
Author(s):  
Marta Anna Götz ◽  
Barbara Jankowska
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Enterprises ◽  
Qualitative Methodology ◽  
Descriptive Analysis ◽  
Foreign Direct Investments ◽  
Eastern European ◽  
International Engagement ◽  
Critical Literature

This chapter seeks to enrich the existing literature by discussing the broader context of international engagement of state-owned enterprises (SOEs). It discusses the rationale for examining foreign direct investment (FDI) done by SOEs and outlines the challenges which need to be addressed in this respect. It provides a brief overview of FDI carried by Polish SOEs. The authors applied the qualitative methodology of critical literature review and descriptive analysis of internationalization of Polish state-controlled firms. This chapter can contribute to the current studies devoted mainly to Chinese or other Asian emerging state-controlled multinationals by adding the Central and Eastern European (CEE), in particular the Polish, perspective. It concludes that given the well-recognised peculiarities of such entities adequate framework needs to be adopted to explore their foreign activities. The Polish multi-case study encompassing nine entities demonstrates that the group can be pretty heterogeneous and indeed can combine the specificity of multinational enterprises (MNEs) and SOEs.

scholarly journals Impact of Economic Growth Per Capita and Foreign Direct Investment on Income Inequality in Indonesia

2018 ◽  
Vol 73 ◽  
pp. 10013
Author(s):  
Suryahani Irma ◽  
Susilowati Indah ◽  
S. B. M. Nugroho
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Income Inequality ◽  
Linear Regression ◽  
Direct Investment ◽  
Positive Influence ◽  
The Philippines ◽  
Per Capita ◽  
Better Than

Income inequality is an important issue in Indonesia. Currently the income inequality in Indonesia is worse than in Thailand, Vietnam, Cambodia and Laos, although it is better than the Philippines and China. This study aimed to analyze the influence of economic growth per capita and foreign direct investment on income inequality in Indonesia.The study period was from 2007 to 2016. This study used a multiple linear regression. The results showed that economic growth per capita and foreign direct investmenthad positive influence onincome inequality. Therefore, the role of economic growth per capita and foreign direct investment will remain high in the future.

scholarly journals International Trade and Foreign Direct Investment: Substitutes or Complements?

2002 ◽  
Vol 34 (2) ◽  
pp. 289-302 ◽  
Author(s):  
Mary A. Marchant ◽  
Dyana N. Cornell ◽  
Won Koo
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rates ◽  
Interest Rates ◽  
Direct Investment ◽  
East Asian ◽  
Agricultural Trade ◽  
Processed Foods ◽  
Asian Countries ◽  
Critical Question ◽  
Simultaneous Equation System

International agricultural trade has evolved over time. Processed foods and developing countries have become major growth markets for U.S. agricultural exports, and foreign direct investment (FDI) has become even more important than exports as a means of accessing foreign markets. The critical question is whether FDI is a substitute for or a complement of exports. This research builds upon an existing theoretical FDI model and contributes to the literature through the development of a simultaneous equation system for FDI and exports, which is estimated using two-stage least squares. Empirical analyses were used to examine the relationship between U.S. FDI and exports of processed foods into East Asian countries-China, Japan, Singapore, South Korea, and Taiwan-from 1989 to 1998. The results indicated a complementary relationship between FDI and exports. Additionally, these results indicated that interest rates, exchange rates, gross domestic product (GDP), and compensation rates are important variables that influence U.S. FDI in East Asian countries, while GDP, exchange rates, and export prices are important export determinants.

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