Analysis of Factors Affecting Foreign Direct Investment (FDI) Inflows in Indonesia

Yuniarto, Agung

doi:10.31603/bisnisekonomi.v18i1.3391

Cited by 2 publications

(2 citation statements)

References 8 publications

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“…Due to unemployment and the loss of working hours, income decreased. As a result, total aggregate demand had decreased, leading to a decline in output [40,50]. The primary source of revenue for many nations has been seriously harmed by the pandemic.…”

Section: Global Fdi and Covid-19mentioning

confidence: 99%

Global FDI inflows and outflows in emerging economies Post-COVID-19 era

2022

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FDI (Foreign Direct Investment) is frequently viewed as a critical measure of a country's economic strength and potential. Consequently, this paper investigates why countries attract FDI by utilizing factors and channels such as vertical or horizontal FDI as well as COVID-19’s impact on FDI flows in emerging economies with data from 1990 to 2020. Models of kinked exponential growth for estimating growth rates and the Andrew and Zivot trend formulations are used to analyze the rise in FDI inflows. The FDI inflow channels are estimated using dynamic panel data analysis, with a generalized method of moments for emerging economies as a whole and an autoregressive distributed lag-pooled mean group for specific countries. The countries studied were India, China, Russia, South Africa, and Brazil. Except for India, where the trend has accelerated, the rest of the nations in the emerging economies category has seen significant or minor declines. Overall, vertical and horizontal factors influence FDI inflows to emerging economies. However, estimations show that vertical and horizontal factors promote FDI inflow into the Russian Federation and India. China's horizontal motivation, on the contrary, is critical. Inflows of FDI into Brazil and South Africa appear to be unrelated. The pandemic scenario affects FDI in Brazil but not in other emerging economies. FDI determinants differ per country. In order to improve their economic situation following the pandemic, developing countries may establish adequate FDI policies to attract FDI.

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Section: Global Fdi and Covid-19mentioning

confidence: 99%

Global FDI inflows and outflows in emerging economies Post-COVID-19 era

2022

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“…According to Chakrabarti (2001), the lack of agreement on a theoretical framework for FDI has led to the publication of a wide range of research on the topic of FDI determinants. Depending on the direction of the link and statistical significance, the findings of earlier studies on the influence of economic factors on FDI inflows come to a variety of conclusions (Yuniarto, 2020).…”

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confidence: 99%

The Analysis of Indonesia’s Nickel Export Affecting the Dynamic of Foreign Direct Investment (FDI) inflows in Indonesia: Multiple Regression Analysis

Qaseem

2023

CJMS

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Indonesia is a major player in the global nickel market, with the country's nickel exports accounting for a significant percentage of its total exports. Despite this, Indonesia has experienced fluctuations in its foreign direct investment (FDI) inflows in recent years. The purpose of this study is to explore the relationship between Indonesia's nickel export and FDI inflows. By understanding the dynamics of FDI in Indonesia, policymakers can better design policies that support economic growth and attract investment to the country. The study used time series data from 1990 to 2021, with the research objects being Indonesia and FDI. The variables analyzed included FDI, Percentage of Total Exports that are Nickel, Nickel Export Value, and Nickel Export Volume. The research method was the OLS regression method with multiple regression analysis, including unit root and classical assumption tests. The result of the study shows that the percentage of total exports that are nickel has a significant negative effect on FDI inflows, while Indonesia's nickel exports value and nickel export volume being positively significant influential factors on FDI inflows in Indonesia.

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Analysis of Factors Affecting Foreign Direct Investment (FDI) Inflows in Indonesia

Cited by 2 publications

References 8 publications

Global FDI inflows and outflows in emerging economies Post-COVID-19 era

Global FDI inflows and outflows in emerging economies Post-COVID-19 era

The Analysis of Indonesia’s Nickel Export Affecting the Dynamic of Foreign Direct Investment (FDI) inflows in Indonesia: Multiple Regression Analysis

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