scholarly journals The Analysis of Factors Affecting Foreign Investment in Indonesia

2016 ◽  
Vol 3 (1) ◽  
pp. 059
Author(s):  
Nur Cahyaningsih
Keyword(s):  
Foreign Direct Investment ◽  
Significant Influence ◽  
Direct Investment ◽  
Time Series Data ◽  
Negative Influence ◽  
Series Data ◽  
Factors Affecting ◽  
Foreign Companies ◽  
The Government

Foreign Direct Investment (FDI) has important role in Indonesian economic development and becomes the engine of growth for the economy. For all this reason, the government starts doing promotions attracting foreign investors to invest in Indonesia by issuing a number of policies. In fact, some foreign companies have left from Indonesia. This research aims at determining the effect of GDP, inflation, and infrastructure toward Foreign Direct Investment in Indonesia from 1981 until 2014. It uses time series data and Error Correction Model (ECM) as the method. Based on analysis findings, all variables used by stationary in first difference, dependent and independent variables in the equation of co-integrating regression has long-term relationship. In the short term, GDP and Infrastructure do not have a significant influence, while inflation has a negative influence and significant in α 5% toward Foreign Direct Investment. In the long term, GDP and Infrastructure have a positive effect and significant at α 5%, while inflation does not have a significant influence to Foreign Direct Investment in Indonesia.

scholarly journals ANALISIS PENGARUH REMITANSI, INVESTASI ASING LANGSUNG, IMPOR DAN PERTUMBUHAN EKONOMI DI INDONESIA

2020 ◽  
Vol 2 (4) ◽  
Author(s):  
Regina Septriani Putri ◽  
Ariusni Ariusni
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Positive Effect

Abstract : This study examined and analysis the effect of remittances, foreigndirect investment, imports, and economic growth in Indonesia in the long run andshort run. This study using Error Correction Model (ECM) method and using theannual time series data from 1989 to 2018. This study found that: (1) remittancehave an insignificant positive effect on economic growth in the long run and shortrun,(2)foreign direct investment have a significant positive impact on economicgrowth in the long run and short run, (3) import have an insignificant positiveimpact on economic growth both in the long run and short run. To increase theeconomic growth in the future, this study suggests the government to decresingimports of consume goods and increasing the inflow of capital goods, rawmaterial goods, remittances and foreign direct investment.Keyword : Remittance, Foreign Direct Investment, Import, Economic Growth andECM

scholarly journals IMPACT OF FOREIGN DIRECT INVESTMENT ON EXPORT SECTOR IN NIGERIA (1981-2018)

2020 ◽  
pp. 19-24
Author(s):  
Edeh, Chukwudi Emmanuel ◽  
Obi, Cyril Ogugua ◽  
Mbaeri, Clara Ndidiamaka ◽  
Ebite Ogochukwu Njideka
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Linear Equations ◽  
Series Data ◽  
Cent Increase ◽  
Oil Export ◽  
Oil Sector ◽  
The Government ◽  
The Impact

The objective of the study is to examine the impact of FDI on exports in Nigeria for the period 1981-2018. Specifically, two linear equations were formulated to trace the impact of FDI on oil sector and non-oil sector. The explanatory variables in the study were exchange rate, GDP, degree of openness, FDI, and inflation. The ADF technique was used to test for the stationarity of the time series data. The results of the Error Correction models reveal that there is a positive and significant (P(FDI) = 0.000) relationship between FDI and oil export in Nigeria. One per cent increase in FDI leads to 0.47 per cent increase in oil export over the period under study. There is a positive and significant (P(FDI) = 0.005) relationship between FDI and non-oil export in Nigeria. One per cent increase in FDI leads to 0.31 per cent increase in non-oil export over the period under study. The impact of FDI on the oil export is higher than the non-oil sector by 0.16 per cent. The study recommends for more aggressive policies to attract FDI in the oil sector to be pursued by the government. Obstacles to doing business in Nigeria should be removed. KEYWORDS: Foreign direct investment, oil export, non-oil export

scholarly journals FDI and long-term economic growth in Egypt

2017 ◽  
Vol 13 (1) ◽  
pp. 65-74
Author(s):  
Saif Alhakimi
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Government Expenditure ◽  
Wage Structure ◽  
Series Data ◽  
The Impact

This research paper aims to empirically analyze the impact of FDI on the long-term economic growth of Egypt. An empirical model was developed to explain the aggregate output, including total labor force, capital stock, foreign direct investment, government expenditure, and the real exchange rate. Annual time-series data from 1990–2013 were then used to estimate the model. Prior to calculating this estimation, the properties of the time series were diagnosed, and an error-correction model was developed and assessed. The overall results suggest that foreign direct investment makes a positive, yet weak and insignificant, contribution to the long-term economic growth of Egypt. This finding warrants further investigation to explore the possible reasons behind it, such as the degree of spillover that FDI has on economic growth and its impact on employment in areas like job creation, wage structure, research, and development.

scholarly journals IMPORT COMPETITION AND LABOUR PRODUCTIVITY IN NIGERIA

2019 ◽  
Vol 4 (2) ◽  
pp. 35-44
Author(s):  
Oziengbe Scott Aigheyisi
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Labour Productivity ◽  
Production Capacity ◽  
Capital Intensity ◽  
Series Data ◽  
Import Competition ◽  
Long Run ◽  
The Government

The paper examines the effects of import competition and other factors such as capital intensity, foreign direct investment (being a channel through which foreign technologies are transmitted into an economy) and access to electricity, on labour productivity in Nigeria using annual time series data spanning the period from 1991 to 2018. In doing this, the FMOLS estimator is employed for estimation of a long run cointegrating model. The study finds that import competition adversely affects labour productivity in the long run. It also finds that the effect of capital intensity on labour productivity is positive, but not statistically significant. Further evidence from the study are that foreign direct investment and access to electricity positively and significantly affect labour productivity in the country. The study recommends, as measures to increase labour productivity in the country, efforts by the government to improve access to electricity, enhance the attractiveness of various sectors of the economy to FDI, and boost domestic production capacity to increase volume and quality of output so as to enhance its competitiveness and reduce dependence on imports, especially of consumption goods.

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.

The Influence of FDI on the Market Structure of the Port Industry

2014 ◽  
Vol 590 ◽  
pp. 895-900
Author(s):  
Rong Wu ◽  
Min Tu
Keyword(s):  
Time Series ◽  
Foreign Direct Investment ◽  
Market Structure ◽  
Significant Influence ◽  
Direct Investment ◽  
Time Series Data ◽  
Market Concentration ◽  
Series Data ◽  
Foreign Direct Investment Stock ◽  
Causality Testing

To study the influence of foreign direct investment on market structure, the paper presented a regression model based on the relevant time series data of foreign direct investment stock on the market structure of ports in China during the period of 1991 to 2011. By Cointegration Granger causality testing of foreign direct investment stock and market concentration of the Chinese port industry, we find significant influence of foreign direct investment on the market concentration of the port industry. At the same time while the inflows of FDI increase market concentration, they also further diversify the concentration and increased competition in the port regions studied.

scholarly journals Foreign direct investment and economic growth in Albania: a co-integration analysis

2016 ◽  
pp. 234-244
Author(s):  
Eglantina Hysa ◽  
Livia Hodo
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Series Data ◽  
Strongly Correlated ◽  
Real Effects ◽  
Positive Effects ◽  
Long Run ◽  
The Government

Theoretical studies strongly support the positive effects of Foreign Direct Investment (FDI) in the Gross Domestic Product (GDP) of the host country through technology transfer, human capital formation, etc. This study aims to examine the real effects of FDI in the economic growth of Albania, since FDI was one of the first pillars of the economy that the government gave priority to after 1990. This relationship was investigated by using the Co-Integration approach for the quarterly data from 1991 to 2012. The time series data are taken from the Bank of Albania. As expected, the empirical findings of this study reveal the existence of a long run relationship of GDP growth and FDI to GDP ratio. Being strongly correlated to each other, FDI to GDP ratio shows its significant contribution to Albanian economic growth.

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 Determinants of Pakistan’s Exports: An Econometric Analysis

2018 ◽  
Vol 21 (3) ◽  
pp. 95-108
Author(s):  
Arshad Ullah Jadoon ◽  
Yangda Guang ◽  
Anwar Ahmad ◽  
Sajad Ali
Keyword(s):  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Time Series Data ◽  
Domestic Product ◽  
Series Data ◽  
Employment Level ◽  
Consumption Expenditures ◽  
Long Run ◽  
The Government

The research investigated the determinants of Pakistan’s exports by using time series data from 1990–2016. Certain econometric tests were also applied to check cointegration among variables. A unit root test was used to check the stationarity of selected variables. After the stationarity of the data, a vector error correction model is used to estimate the effect of regressors, like foreign direct investment, gross domestic product, employment level, and consumption expenditures on a dependent variable, i.e. exports in the short run. The result shows the positive relationships that foreign direct investment, gross domestic product and employment level have on exports, and the adverse impact of consumption expenditures on the dependent variable. The study uses Johansen’s cointegration test for the long run. The results show that all the variables are co‑integrated in the long run. It is suggested that the government should encourage foreign direct investment and gross domestic product, which would help accelerate Pakistan’s exports. It is also suggested that whenever policymakers provide a trade policy, in particular, in relation to exports, then the adverse effect of exchange rate depreciation, external debt burdens, taxes, sanctions and protectionism should be quantified, and necessary measures be suggested so as to minimize any repercussions.

scholarly journals THE EFFECT OF AGGREGATE INSTITUTIONAL QUALITY ON FOREIGN DIRECT INVESTMENT IN NIGERIA: EVIDENCE FROM NARDL

2020 ◽  
Vol 2 (2) ◽  
pp. 1-13
Author(s):  
Musa Sakanko ◽  
James Obilikwu ◽  
Joseph David
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Quantitative Research ◽  
Time Series Data ◽  
Institutional Quality ◽  
Legal Framework ◽  
Vital Role ◽  
Series Data ◽  
Long Run ◽  
The Government

The vital role of foreign direct investment has been widely studied and documented in the economic literature; however, the argument remains largely on identifying the main determinants of FDI to developing countries. It is on this note, the quantitative research method was adopted to investigates the asymmetric relationship between aggregate institutional quality and foreign direct investment in Nigeria using the Nonlinear Autoregressive Distributive Lag (NARDL) model on quarterly time-series data from 1999 Q1 – 2019 Q4. The bounds test obtains revealed that long-run co-integrating relationship exist among the variables. The NARDL result shows that both in the short-run and long-run aggregate institutional quality have asymmetric and a statistically significant effect on foreign direct investment. The study recommends that the government should establish or strengthen the quality of institutional indicators and legal framework to assure confidence in the system to motivate Foreign Direct Investment (FDI) inflow.

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