Dukungan IFRS pada FDI dalam Peningkatan Kemakmuran Negara

Abstract

The purpose of this study is to investigate the role of IFRS application in economic welfare. Based on macroeconomics data from World Bank, the regression analysis was used to observe the relationship between IFRS and FDI. The IFRS fail to entice FDI flow in Indonesia. Unfortunately, the financial reporting quality has not increased yet by IFRS application. Furthermore, IFRS fail to lessen the risk of doing business in Indonesia. FDI investments are not intended for transferring technology and knowledge. To sum up, FDI potentially become a burden for the economic welfare.