scholarly journals ANALISIS SIMULTAN ANTARA ALIRAN MODAL, NILAI TUKAR DAN INFLASI DI INDONESIA PERIODE 2000.01 – 2012.09

Media Ekonomi ◽  
2017 ◽  
Vol 21 (1) ◽  
pp. 42
Author(s):  
Mardiansyah . ◽  
Dian Octaviani, ME
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Interest Rates ◽  
Capital Flows ◽  
Direct Investment ◽  
Simultaneous Equation ◽  
Short Term ◽  
Factors Affecting ◽  
High Inflation ◽  
The Exchange Rate

<p>Globalization and the open economic enchanced the integration of financial market and the economic condition in several countries. The effects of such integration shows in the movement of capital flows between countries. The potential risks of the capital flows, such as sudden reversal, the pressure on the exchange rate and high inflation and the susceptibility on financial sector, might be be arised. The goal of this research is to analyze the relationship between capital flows, exchange rates and inflation in Indonesia period 2000.01 – 2012.09. The method used in this research is simultaneous equations method. The model equations in this study are divided into two, which are a short-term investments are proxied from portfolio investment and long-term investments proxied from foreign direct investment. The results of the first model estimates the short-term investments shows that the exchange rate and inflation does not significant affecting short-term investments, but the ratio of domestic interest rates to foreign interest has a positive and significant impact on short-term investments. While, a short-term investments has negative and significant impact on exchange rate IDR per USD and inflation positive and significant effect on exchange rate. Factors affecting the rate of inflation is SBI interest rate and the money supply. One the other hand, the results of the second model estimation shows that the exchange rate and inflation has positive and significant impact on the flow of foreign direct investment. Inflation rate does not alter the terms of the investor’s decision in investing in Indonesia, because it was followed by the improvement in economic conditions in Indonesia.<br />Keywords: Capital Flows, Exchange Rate, Inflation, Simultaneous Equation</p>

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 External and Internal Factors of Cross-Border Capital Flows in Russia

2019 ◽  
Vol 13 (4) ◽  
pp. 41-50 ◽  
Author(s):  
M. Yu. Golovnin ◽  
G. R. Oganesian
Keyword(s):  
Growth Rate ◽  
Foreign Direct Investment ◽  
Interest Rates ◽  
Capital Flows ◽  
Direct Investment ◽  
Portfolio Investment ◽  
Financial Assets ◽  
Internal Factors ◽  
Factors Affecting ◽  
Cross Border

The literature on the assessment of factors affecting cross-border capital flows is usually characterised by distinguishing of external and internal factors. The former as a rule include international indices of the global economic growth rate, interest rates and other indicators of profitability (for certain types of financial assets). The latter include domestic indices of the growth rate of the national economy, interest rates and the profitability of financial instruments, sovereign credit ratings. Since the beginning of the 21st century, cross-border capital flows in Russia have followed the same trends as capital flows in other emerging markets. A distinguishing feature of Russia was the negative impact of sanctions on the level of its financial openness. We estimated regressions, designed to evaluate the factors affecting the individual components of cross-border capital flows in Russia. Regressions for the three types of flows (liabilities of direct investment and portfolio investment liabilities, and assets) demonstrate good results. Among external factors, the dynamics of oil prices turned out to be significant, as well as the global stock index (for portfolio investment assets). Among internal factors, an increase in aggregate demand helps to attract foreign direct investment, and an increase in the yield of Russian financial assets (stocks and bonds) — to attract portfolio investments. The difference in interest rates is the determinant of all analysed capital flows. Our estimations confirmed the significance of the “round-tripping” movement of foreign direct investment in Russia.

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 Capital Flows and Money Supply: The Degree of Sterilization in Pakistan

2017 ◽  
Vol 4 (1) ◽  
pp. 18
Author(s):  
Hina Ali ◽  
Sadia Sajjad
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Money Supply ◽  
Capital Flows ◽  
Direct Investment ◽  
Price Index ◽  
Descriptive Analysis ◽  
Consumer Price Index ◽  
Series Data

The present study proposes to analyze the impact of the capital flows on the economic growth. The change in the capital flows affects the money supply in the economy which in return influences the economic growth. The augmented dickey fuller test (ADF), descriptive Analysis, correlation method, and the auto regressive distribution lag are employed in this work. The ADF test is delved to examine the Stationarity of the variables and the correlation between them. The descriptive analysis is used to check the normality of the variable whether the variables is normally distributed or not. The survey bases on time series data ranging from the year 1974 to 2014. The variables as the gross domestic product (GDP), exchange rate (ER), inflation (INF), consumer price index (CPI), money supply (M2), total reserves (TR) and the foreign direct investment (FDI), price indices (PI). The research findings are Foreign direct investment, Exchange rate, Inflation rate, Consumer Price Index has the positive impact on the GDP while the Private Investment, Total reserves, and Money supply have the negative impact on the GDP. The value of the R square is 0.99874 which is very good. It means that the 99 percent variations exist in dependent variable due to independent variables. 

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 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 Influence of Exchange Rate on Foreign Direct Investment Inflows: An Empirical Analysis Based on Co-Integration and Granger Causality Test

2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Lan Tan ◽  
Yifan Xu ◽  
Alemayehu Gashaw
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Granger Causality ◽  
Direct Investment ◽  
Close Association ◽  
Causality Test ◽  
Fdi Inflows ◽  
The Exchange Rate

Although it is widely recognized that Foreign Direct Investment (FDI) inflows have a dominant effect on economic growth of host countries, the determinants of FDI inflows are still unclear. Especially, about the effect of exchange rate on FDI inflow, the results reached by scholars vary across countries or regions. It is of great practical and theoretical significance to explore the influencing effects of exchange rate on FDI inflow and identify the mechanisms that underlie them in close association with regional economic characters so as to help local government implement targeted government policies to achieve sustainable FDI inflow and sustainable economic growth. For this purpose, the influencing effects and the influencing mechanisms of the exchange rate on FDI inflows are investigated for Zhejiang province, China, over 1985–2019 by employing the co-integration tests, vector error correction models, Granger causality tests, and impulse response tests. Empirical results indicate that there are long-term stable and unidirectional causal relationship between the exchange rate and FDI inflow. Continuous appreciation of RMB against USD discourages FDI inflow. The mechanism which underlies the long-term relationship is the wealth effect, rather than the cost effect or the demand effect. By contrast, in the short run, neither the exchange rate nor the three influencing mechanism has a significant impact on FDI inflow. These results suggest policy recommendations for improving FDI by accumulating human capital and improving infrastructure. These findings are also applicable for other countries or regions with similar economic characters.

scholarly journals Econometric Study of the Dynamics of Foreign Direct Investment in Russia

2020 ◽  
Vol 9 (27) ◽  
pp. 92-103
Author(s):  
Valentina E. Guseva ◽  
Sofya V. Mechik
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Direct Relationship ◽  
Time Lag ◽  
Consumer Price Index ◽  
Business Environment ◽  
Investment Activity ◽  
The Exchange Rate ◽  
The Impact

Foreign investment is of high importance for economic growth in Russia. The problem of enhancing investment flows makes it increasingly relevant to search for effective tools for stimulating investment activity. We attempt to identify the factors affecting the dynamics of foreign direct investment (FDI). The paper analyses the current state of foreign direct investment in the Russian economy. Using empirical data for 2001–2018, we construct an econometric model for Russia which considers such factors as inflation (the Consumer Price Index), the exchange rate and imports. The results of the model’s testing do not confirm the initial assumptions that inflation exerts a more profound effect on FDI than the exchange rate and that there is a correlation between these indicators. For Russia, the dependence of FDI on the exchange rate remains insignificant; in addition, we find a direct relationship between the indicators. According to the model, the impact of inflation (direct relationship) and the volume of imports (inverse relationship) are of greater significance. It is noteworthy that the dynamics of foreign direct investment is partially due to its fluctuations with a time lag. The model forecasts that from 2019 to 2024 Russia is expected to experience a rise in FDI net outflows. The findings indicate that in order to attract foreign direct investment, it is necessary to implement economic transformations that will improve the business environment and lead to the development of healthy competition.

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