Do Institutional and Banking Cost Affect Investment in ASEAN?

Abstract

ASEAN is one of the actors in the world economy. With the launch of Forging Ahead Together, it is hoped that ASEAN can strengthen its economy and attract foreign investors to invest. The entry of large foreign investment into ASEAN is an opportunity for global investors. On the other hand, the factors that affect investment are from economic as well as non-economic. One important economic factor is banking costs because investment activities are inseparable from the presence of the financial sector which can cause costs and prices. Meanwhile, non-economic factors include institutional costs arising from the quality of a country's governance. This study uses a quantitative approach with panel regression analysis method to determine whether economic factors, namely bank costs or non-economic factors, affect the level of investment in ASEAN countries.

Factors of BPD Deposit Interest Rate, Government Bank Deposit Interest Rate, Inflation Rate, Economic Growth (GDP) and Money Supply to the Rupiah Exchange Rate per US dollar in Indonesia for the Period 2004 - 2021

“…The real interest rate, as explained by Manzilati et al (2022), takes into account inflation, which erodes the purchasing power of money. This concept is crucial in understanding how interest rates affect savings and investments.…”

The Influence of Accounting Conservatism, Ownership Concentration, and Debt Maturity on Investment Efficiency

“…Investment involves making preparations for the future, which can include saving, managing funds for business ventures, or participating in insurance schemes that provide future benefits (Putri et al, 2021;Mentari et al, 2022). Manzilati et al (2022) state that investment plays a crucial role in shaping the level of development and overall welfare of a nation. The investments made do not only focus on the financial sector such as shares, bonds and so on.…”