scholarly journals FACTORS AFFECTING INWARD FOREIGN DIRECT INVESTMENT: CASE OF ASEAN COUNTRIES

INFO ARTHA ◽  
2019 ◽  
Vol 3 (2) ◽  
pp. 119-132
Author(s):  
Gabriela Grace
Keyword(s):  
Human Capital ◽  
Foreign Direct Investment ◽  
Interest Rates ◽  
Direct Investment ◽  
Global Financial Crisis ◽  
Trade Openness ◽  
High Tech ◽  
Positive Effects ◽  
Asean Countries

The goal of this study is to identify the determinants of foreign direct investment in members of ASEAN countries (will be known as ASEAN-9 and ASEAN-7 from 1990 to 2017 by using Pooled Least Square as the model.The results show that market size, trade openness, infrastructure, research & development, and inflation have positive effects on inward FDI which can be considered as determinants of FDI. On the other hand, human capital and real interest rates show a negative sign.This study also discussed the FDI trend after the global finance crisis in 2008. The results indicate that the annual trend for FDI after 2008 is positive, which means there is no big impact from the global financial crisis of 2008 on FDI inflows.Based on the results, GDP, infrastructures, and trade openness become the important factors to attract foreign investors. Therefore, government can improve through policies, such as easing trade procedures, or improving the quantity and quality of the infrastructure.The difference finding is found on the negative result of human capital effect on inward FDI. Thus, the quality of human resources still needs improvement because it can improve thelow-tech into high-tech destination countries for FDI.

Tourism-Led Growth Hypothesis and Foreign Direct Investment in ASEAN

2020 ◽  
pp. 359-384
Author(s):  
Praopan Pratoomchat
Keyword(s):  
Human Capital ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Gdp Per Capita ◽  
Tourism Sector ◽  
Per Capita ◽  
Asean Countries ◽  
Asean Economic Community ◽  
Growth Hypothesis

This study tests the relationships of visitor spending, foreign direct investment in the tourism sector, and the gross domestic product (GDP) per capita among members of the Association of Southeast Asian Nations (ASEAN) during the period of 1988 to 2011 to prove the tourism-led growth hypothesis. The results of panel regression show that tourism-led growth hypothesis is valid for the ASEAN countries. Factors determining the GDP per capita in these countries are visitor spending, foreign investment and government consumption in tourism sector, human capital and trade openness. The results from this study suggest that the governments of the ASEAN countries are able to have effective growth policies by encouraging foreign direct investment in the tourism sector and improving their human capital. Therefore, ASEAN Economic Community (AEC) which will strengthen and facilitate investment cooperation and human capital developments in the tourism sector among ASEAN countries will have a significant benefit to economic growth in the region.

Tourism-Led Growth Hypothesis and Foreign Direct Investment in ASEAN

2017 ◽  
pp. 224-249 ◽  
Author(s):  
Praopan Pratoomchat
Keyword(s):  
Human Capital ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Trade Openness ◽  
Gdp Per Capita ◽  
Tourism Sector ◽  
Per Capita ◽  
Asean Countries ◽  
Asean Economic Community ◽  
Growth Hypothesis

This study tests the relationships of visitor spending, foreign direct investment in the tourism sector, and the gross domestic product (GDP) per capita among members of the Association of Southeast Asian Nations (ASEAN) during the period of 1988 to 2011 to prove the tourism-led growth hypothesis. The results of panel regression show that tourism-led growth hypothesis is valid for the ASEAN countries. Factors determining the GDP per capita in these countries are visitor spending, foreign investment and government consumption in tourism sector, human capital and trade openness. The results from this study suggest that the governments of the ASEAN countries are able to have effective growth policies by encouraging foreign direct investment in the tourism sector and improving their human capital. Therefore, ASEAN Economic Community (AEC) which will strengthen and facilitate investment cooperation and human capital developments in the tourism sector among ASEAN countries will have a significant benefit to economic growth in the region.

scholarly journals HUBUNGAN TIMBAL BALIK ANTARA ARUS MASUK FOREIGN DIRECT INVESTMENT DAN HUMAN CAPITAL DI INDONESIA DAN INDIA

Bina Ekonomi ◽  
2019 ◽  
Vol 22 (1) ◽  
pp. 63-84
Author(s):  
Raden Fiat Mahadhika Ramzy
Keyword(s):  
Human Capital ◽  
Foreign Direct Investment ◽  
Host Country ◽  
Direct Investment ◽  
Time Series Data ◽  
Least Square ◽  
Series Data ◽  
Two Stage ◽  
Positive Effects

Foreign Direct Investment (FDI) benefits the host country by technology transfer and spillover effect toward its workforce. Meanwhile, the quality of human capital (HC) in the host country may attract FDI. This study aims to examine the relationship of FDI inflow and the quality of HC in Indonesia and India and to investigate FDI orientation. Applied two-stage least square to time series data of the year 2000-2015, the result shows a causal relationship between FDI and HC in Indonesia, but one-way relationship from FDI to HC in India. Government spending on education and health has positive effects on HC in both countries. In Indonesia, FDI is positively affected by HC and growth, while in India, only by country risk index.Keywords: Foreign Direct Investment, human capital, two stage least square

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 Dynamics of Foreign Direct Investment in BRICS Countries

2017 ◽  
Vol 9 (3(J)) ◽  
pp. 101-112
Author(s):  
Kunofiwa Tsaurai
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Direct Investment ◽  
Financial Development ◽  
Direct Investment ◽  
Fixed Effects ◽  
Trade Openness ◽  
Human Capital Development ◽  
Brics Countries ◽  
Capital Development

Recent studies which investigated the determinants of foreign direct investment (FDI) in BRICS include Hsin-Hong and Shou-Ronne (2012), Nandi (2012), Jadhav (2012), Darzini and Amirmojahedi (2013), Nischith (2013), Ho et al. (2013), Kaur et al. (2013) and Priya and Archana (2014). The findings from these studies shows lack of consensus and confirm that a list of agreeable determinants of FDI in BRICS countries is still an unsettled matter. This paper was therefore initiated in order to contribute to the debate on the discourse on FDI determinants in BRICS countries.This paper deviates from earlier similar studies in five ways: (1) uses most recent data, (2) is the first to investigate whether a combination of financial development, trade openness, human capital, economic growth and inflation influence FDI in BRICS countries, (3) uses different proxies of the variables that affect FDI, (4) employed both fixed effects and pooled ordinary least squares (OLS) approaches and (5) used a stacked data approach.The results of the study showed that economic growth, trade openness and exchange rate stability positively impacted on FDI, financial development positively influenced FDI under fixed effects, FDI was positively influenced by human capital development using the pooled OLS and inflation negatively affected FDI in line with literature. Taking into account these findings, this study urges BRICS to implement policies that increase financial sector efficiency and economic growth, maintain stable exchange rates, keep inflation rates at lower levels, enhance trade openness and human capital development in order to increase FDI inflows.

THE NEXUS BETWEEN ECONOMIC GROWTH, STOCK MARKET DEPTH, TRADE OPENNESS, AND FOREIGN DIRECT INVESTMENT: THE CASE OF ASEAN COUNTRIES

2019 ◽  
Vol 64 (03) ◽  
pp. 461-493 ◽  
Author(s):  
RUDRA P. PRADHAN ◽  
MAK B. ARVIN ◽  
JOHN H. HALL
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Stock Market ◽  
Mutual Fund ◽  
Direct Investment ◽  
Trade Openness ◽  
Market Depth ◽  
Long Run ◽  
Asean Countries ◽  
Tax Holidays

Many studies have investigated the causal relationship between economic growth and the depth in the stock market, between economic growth and trade openness, or between economic growth and foreign direct investment. Advancing on earlier work, this paper uses vector error-correction and cointegration techniques in order to establish whether there is a long-run equilibrium relationship between all four variables. We consider a sample of 25 ASEAN Regional Forum (ARF) countries which are studied over the period 1961–2012. Our analysis, which combines various strands of the literature, establishes the direction of causality between the variables. Policy recommendations include the encouragement of mutual fund investment by smaller investors to increase stock market depth as well as methods to increase foreign direct investment, such as tax holidays.

scholarly journals EU-COUNTRY AND NON-EU-COUNTRY AT THE TIME OF CRISIS: FOREIGN DIRECT INVESTMENT

2020 ◽  
Vol 6 (3) ◽  
pp. 19-23
Author(s):  
Helga Kristjánsdóttir ◽  
◽  
Stefanía Óskarsdóttir ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Financial Crisis ◽  
Stock Market ◽  
Direct Investment ◽  
Global Financial Crisis ◽  
Economic Consequences ◽  
Portfolio Investment ◽  
Broad Perspective ◽  
Economic Wealth ◽  
Positive Effects

The global financial crisis affected the flows of foreign direct investment (FDI). This study focuses on two countries in the midst of the financial crisis: Iceland with IMF backup, and Ireland with ECB backup. The research focus is on the situation from the broad perspective of international economics and political atmosphere, combining government decisions with economic consequences. We analyze inward foreign direct investment, incorporating factors like economic size and stock market firms, receiving portfolio investment, rather than FDI. Our findings indicate that before the crisis the economic wealth in the domestic market to have positive effects on FDI, and firms receiving portfolio investment on the stock market are competing with FDI. This is the case for both Ireland and Iceland. However, after the crisis, these factors have insignificant impact on FDI.

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI PENANAMAN MODAL ASING (PMA) LANGSUNG DI PURBALINGGA

2018 ◽  
Vol 16 (2) ◽  
pp. 103-123
Author(s):  
Soffi Setyoningrum
Keyword(s):  
Foreign Direct Investment ◽  
Regression Analysis ◽  
Interest Rates ◽  
Direct Investment ◽  
Analysis Tool ◽  
Labor Costs ◽  
Factors Affecting ◽  
Factors Analysis ◽  
Increase Productivity

This study entittled "FACTORS AFFECTING FOREIGN DIRECT INVESTMENT(FDI) IN PURBALINGGA". The purpose of this study was to analyze some factorsaffecting foreign direct investment in Purbalingga. The study used independentvariables, including GDP, interest rates, inflation, labor costs,and infrastructureroads. The analysis tool used the classification assumptions and hypothesis testing.Data were used from 2001 to 2015. From the results of regression analysis, showedthat GDP, road 6infrastructure have a positive and significant impact. Interest ratesand labor costs have a negative and significant impact, while inflation wasseen not to have significant impact on foreign direct investment inflows. Theimplication of this study are goverment should increase productivity so the addedvalue generated can be increased, improving the quality of the workforce so asto create employment opportunities more widely to reduce unemployment, improvethe quality of development more adequate infrastructure of the whole area evenlyPurbalingga.Keywords: FDI, factors analysis, regression analysis.  

scholarly journals Analysis of Economic Growth in ASEAN Countries

2020 ◽  
Vol 18 (1) ◽  
pp. 80
Author(s):  
Dina Eka Anggraini ◽  
Wahyu Hidayat Riyanto ◽  
Muhammad Sri Wahyudi Suliswanto
Keyword(s):  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Trade Openness ◽  
Capital Formation ◽  
Domestic Product ◽  
Consumption Expenditure ◽  
Single Digit ◽  
Asean Countries ◽  
The Government

This studied aims to explained the effect of the variables of inflation, consumption expenditure, capital formation, foreign direct investment, and trade openness on gross domestic product ASEAN countries from 1996 – 2018. This research used a panel regression analyzed method to test the data in getting decisions. The t-statistic test results showed that consumption expenditure, capital formation, foreign direct investment, and trade openness significantly influence the direction of a positive relationship to gross domestic product. However, inflation showed a negative direction and had a significant effect on the gross domestic product so that if there is increased inflation it will reduce gross domestic product. The government can formula a single-digit policy so that there is no decline in the gross domestic product of ASEAN countries.

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