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.

Impact of Trade Openness, FDI, Exchange Rate and Inflation on Economic Growth: A Case Study of Pakistan

2014 ◽  
Vol 1 (1) ◽  
pp. 236 ◽  
Author(s):  
Sadia Bibi ◽  
Syed Tauqeer Ahmad ◽  
Hina Rashid
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Time Series Data ◽  
Negative Impact ◽  
Trade Openness ◽  
Least Square ◽  
Series Data ◽  
Trade Surplus

This study focuses on empirical analysis to find out the role of trade openness, inflation, imports, exports, real exchange rate and foreign direct investment in enhancing economic growth in Pakistan. The analysis based on time series data for the period 1980 to 2011. This paper uses ADF; PP and DF-GLS tests to find out stationarity of the variables and Co-integration and DOLS (Dynamic Ordinary Least Square) techniques have been used for the estimation. Co integration results indicated the long run relationship among the variables. However, negative impact of trade openness can be overcome by producing import substitutes and creating conditions for trade surplus. Furthermore, foreign direct investment and trade are considered vital elements that improve the influence of economic growth.  

scholarly journals ANALISIS KAUSALITAS OUTPUT, KURS, SUKU BUNGA DAN INFLASI DENGAN INVESTASI ASING DI INDONESIA

2015 ◽  
Vol 4 (2) ◽  
pp. 143
Author(s):  
Maltio Maltio ◽  
Melti Roza Adry ◽  
Yeniwati Yeniwati
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Causal Relationship ◽  
Foreign Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Series Data ◽  
The Exchange Rate ◽  
The Relationship

This study investigates the relationship among output, exchange rate, interest rate (BI rate) and inflation with foreign investment (FDI), in Indonesia. The relationship among that variables is very important, because Indonesia getting start to optimize the growth economic arising out of crisis.This study used a VAR model to see causality output, exchange rate, interest rate (BI rate) and inflation with foreign investment (FDI). The data used is the time series data from 2003: 1-2014: 3 collected through documentation of relevant government agencies. In more detail, the technique used is the Vector Autoregression (VAR) to analyze the causal relationship.The results obtained indicate that foreign direct investment (FDI) has a causal relationship with the output. But there was no causal relationship between foreign direct investment (FDI) with the exchange rate, interest rate (BI rate) and inflation only unidirectional relationship in which foreign investment (FDI) effect on the exchange rate and foreign investment affect the BI rate.Keyword : foreign investment, exchange rates, interest rate ad inflation

scholarly journals Determinants of Foreign Direct Investment: Empirical evidence from India

2014 ◽  
Vol 10 (1) ◽  
pp. 16-23
Author(s):  
Shamurailatpam sofia Devi ◽  
Shamurailatpam sofia Devi
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Central Government ◽  
Time Series Data ◽  
Positive Sign ◽  
Series Data ◽  
Market Size ◽  
Economic Activities ◽  
Fdi Inflows

Abstract: India received, over the past two decades substantial amount of Foreign Direct Investment (FDI) inflows. The purpose of this study is to empirically investigate the determinants of FDI inflows in India using time series data for the period 2001-02 to 2011-12. In the analysis, FDI inflows are modeled as a function of market size, total reserves, degree of openness for the host country, exchange rate and lastly expenditure of the central government on economic and social activities. The empirical study observed that market size and availability of foreign exchange reserves are the two main factors that determine the inflow of FDI over the study period. Despite the theoretically expected sign, estimated coefficient of the variable exchange rate bears a positive sign. And variables like Openness and the expenditure of the central government on social and economic activities do not explained the inflow of FDI during the period.Keywords: Exchange rate, Foreign Direct Investment, market size, total reserves.  

Effects of Infrastructure Development on Foreign Direct Investment in Kenya

2016 ◽  
Vol 8 (2) ◽  
pp. 93-110 ◽  
Author(s):  
Carol Teresa Wekesa ◽  
Nelson H. Wawire ◽  
George Kosimbei
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Trade Openness ◽  
Transport Infrastructure ◽  
Series Data ◽  
Infrastructure Development ◽  
Fdi Inflows ◽  
Year 2000 ◽  
Quality Infrastructure

Kenya’s foreign direct investment (FDI) inflows as a percentage of GDP have been increasing negligibly over the last 4 years, increasing from 0.4 per cent in 2010 to 0.9 per cent in 2013. And yet evidence shows that quality infrastructure lowers the cost of doing business and thus attracts FDI. Kenya has visible signs of infrastructure inadequacy and inefficiencies despite the fact that since the year 2000, there has been increased budgetary allocation to the infrastructure sector. This study, therefore, sought to determine the effects of transport, energy, communication and water and waste infrastructure development on FDI inflows in Kenya. The study used annual time series data sourced from Central Bank of Kenya, World Bank and the United Nations Conference on Trade and Development (UNCTAD). Using multiple regression analysis, it was established that improved transport infrastructure, communication infrastructure, water and waste infrastructure, exchange rate, economic growth and trade openness are important determinants of FDI inflows into Kenya. Hence, for Kenya to attract more FDI, continued infrastructural development is key since quality infrastructure affords investors a conducive investment climate in which to operate.

scholarly journals Trade Openness and Economic Growth Nexus in Pakistan

2020 ◽  
Vol V (III) ◽  
pp. 22-33
Author(s):  
Ghulam Yahya Khan ◽  
Muhammad Masood Anwar ◽  
Aftab Anwar
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rate ◽  
Granger Causality ◽  
Direct Investment ◽  
Trade Openness ◽  
Explanatory Variables ◽  
Integration Approach ◽  
Long Run

This study explores the nexus amongst trade openness and economic growth for Pakistan for 1981-2019. Trade-openness is a dependent variable, and it is measured as imports plus exports to GDP ratio. Economic growth, Foreign Direct Investment, Inflation, Exchange rate, and interest rate are taken as explanatory variables. Co-integration approach by Johansen and Juselius (1988, 1991) has been used for long-run relationships. Results indicate that Trade-Openness has significantly affected the economic growth and other control variables of the study for Pakistan. There exist bidirectional Granger Causality in the selected variables.

scholarly journals Globalization and Agricultural Sector Output in Nigeria

2020 ◽  
Author(s):  
Olusegun Akinwale Samson ◽  
Oluwabusayo Temitope Obagunwa
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Agricultural Sector ◽  
Raw Materials ◽  
Trade Openness ◽  
Series Data ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Integration Test

This study examined the effect of globalization on agricultural sector development in Nigeria. The study employed annual time series data from Central Bank of Nigeria Statistical Bulletin between 1986 and 2018 which were analyzed with Autoregressive Distributed Lag technique. The result of the Bound co-integration test indicated that there is long run relationship among agricultural sector output, foreign direct investment, foreign portfolio investment as a percentage of gross domestic product, trade openness and exchange rate. The result of the ARDL revealed that trade openness, foreign portfolio investment and exchange rate stimulate agricultural sector output while foreign direct investment negatively influence agricultural sector output in Nigeria. It was concluded that globalization plays important role in the development and enhancement of agricultural sector output in Nigeria through openness and financial inflow to the sector. Thus, government should formulate policy frameworks that will enhance the trade relationship between the agricultural sector and other developed nations to facilitate the inflow of important raw materials for the sector’s productivity, government should formulate policies that will ease direct investment inflow into the agricultural sector by creating linkage between foreign multi-national companies and agricultural sector in Nigeria. Finally, it was recommended that exchange rate stability should be prioritized by the government and more foreign exchange subsidy should be given to the agricultural sector to facilitate the of importation of raw materials.

scholarly journals External Sector Aggregates and Economic Growth in Nigeria

2018 ◽  
pp. 33-42
Author(s):  
Akidi, Victor ◽  
Tubotamuno, Boma ◽  
Obayori, Joseph Bidemi
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Time Series Data ◽  
Unit Root Test ◽  
Series Data ◽  
Correction Technique ◽  
Integration Test ◽  
External Sector

This paper empirically examined the effects of selected external sector aggregates on economic growth in Nigeria from 1981 to 2016. Time series data on Real Gross Domestic Product as proxy for economic growth, and on Imports, Exports, Exchange Rate and Foreign Direct Investment were collected from secondary sources. The data sets were analyzed using descriptive statistics, unit root test, co-integration test and error correction technique of model estimation. The result of the analysis revealed that Imports, Exchange Rate and Foreign Direct Investment negatively related with economic growth while Exports positively related with economic growth in Nigeria within the reviewed period. Also, except Exchange Rate all the other explanatory variables – Imports, Exports and Foreign Direct Investment did not impact significantly on economic growth in Nigeria within the period of study. Based on these findings, the study recommends that government should encourage export diversification, especially the non-oil sector exports. This can be achieved through value addition in both the agriculture and manufacturing sub-sectors output.

Trade Openness, Foreign Direct Investment and Economic Growth: Empirical Evidence from India

2016 ◽  
Vol 6 (2) ◽  
Author(s):  
Brajaballav Pal
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Trade Openness ◽  
Unit Root Test ◽  
Series Data ◽  
Long Run ◽  
Integration Test ◽  
The Government

This paper examines the relationship among GDP, foreign direct investment and trade openness for India using time series data from 2001 to 2016. In this study unit root test is used to solve the problem of stationery and to determine the order of integration between the variables. Johnson co-integration test suggests that there is a long run equilibrium relationship among the variables by considering relationship between Gross Domestic Product (GDP), Foreign Direct Investment (FDI) and Trade Openness (TO). The result indicates that trade openness exerts influence on foreign direct investment. The government and policy makers should take up strategies to attract foreign investment so as to promote economic growth.

Determinants of Foreign Direct Investment in Pakistan: A Comparative Analysis in Democratic and Non-Democratic Eras

2015 ◽  
Vol 1 (1) ◽  
Author(s):  
YASIR KHAN ◽  
ALAM REHMAN ◽  
FARMAN ULLAH KHAN
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Global Economy ◽  
Time Series Data ◽  
Trade Openness ◽  
Series Data ◽  
Dummy Variable ◽  
Unit Root Testing ◽  
Long Run ◽  
Significant Difference

The chief objective of this research is to investigate empirically the determinants which affect Foreign Direct Investment (FDI) inflow in Democratic and non-Democratic eras of Pakistan by using yearly data from 1980 -2014. In this research, six independent variables have been taken along with Dummy which are Gross Domestic Product, Interest Rate, Trade Openness, Inflation Rate, Exchange rate, Dummy variable and one dependant variable which is Foreign Direct Investment. For econometric analysis, annual time series data were collected from the Pakistan Bureau of Statistics, UNCTAD, World Development Indicator (various issues), International Financial Statistics, Global Economy and Economic Survey of Pakistan. This thesis applied advanced econometric methodology which comprises unit root testing and Johansen co-integration analysis. The Vector Error Correction Model (VECM) was employed to identify both the long-run and short run relationship between FDI and its determinants. The dummy variable captured the difference as there is a significant difference between the determinants of Foreign direct investment in Democratic and Non-Democratic eras of Pakistan.

Impact of Globalization on Economic Growth in Vietnam: An Empirical Analysis

2018 ◽  
pp. 32-47 ◽  
Author(s):  
Dat Tho Tran ◽  
Van Thi Cam Nguyen
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Empirical Analysis ◽  
Direct Investment ◽  
Time Series Data ◽  
Series Data ◽  
Balance Of Trade ◽  
The Impact

This study aims at investigating the impact of globalization on economic growth in the case of Vietnam. Empirical analysis is done by using time series data for the period from 1995 to 2014. The paper tested the stationary cointegration of time series data and utilized the error correction modeling technique to determine the short run relationships among economic growth, globalization, foreign direct investment, balance of trade and exchange rate variables. Then, the long run relationship between economic growth and the variables representing economic integration were estimated by ordinary least square. The results show that globalization, measured by the KOF index, promotes economic growth and Vietnam has gained from integrating into the global economy. The overall index of globalization had positively and significantly impacted the economic growth in Vietnam. The results also indicated that economic globalization had a significantly positive effect on economic growth in the period examined. The study further revealed that foreign direct investment and the exchange rate affect economic growth positively whereas balance of trade affects economic growth negatively.

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