What drives the inflow of FDI in OIC countries? Evidence from Top 10 hosts of inward FDI flows

Supriani, Indri; Fianto, Bayu Arie

doi:10.20885/jeki.vol6.iss2.art2

Cited by 3 publications

(4 citation statements)

References 38 publications

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“…Faktor lainnya yang dapat mempengaruhi arus masuk FDI adalah keterbukaan perdagangan (trade openness) [20]. Hal ini didukung adanya era globalisasi yang membuat keterbukaan perdagangan internasional dan finansial yang semakin lazim di negara ASEAN [21].…”

Section: Pendahuluanunclassified

Analisis Determinan Foreign Direct Investment di ASEAN-6

Maharani,

Setyowati

2024

INFEB

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FDI is one of the components that can spur economic growth. Developing countries, especially in the ASEAN region, need more capital inflows in the form of foreign direct investment. The purpose of this study is to find out what factors affect FDI in 6 ASEAN countries (Indonesia, Malaysia, Singapore, Thailand, Brunei Darussalam, and Vietnam) for the period 2010-2021. The analysis method used is quantitative analysis method with panel data method approach. Data calculations were carried out using E-views 10 and Microsoft Excel 2019. The variables used are FDI as the dependent variable, while GDP, inflation, interest rates, and trade openness are independent variables. The results showed that the coefficient of determination is 0.7566. That is, 75.66% of FDI is influenced by GDP, inflation, interest rates, and trade openness variables and the rest is influenced by other variables. The estimation results of the F statistical test show the results that GDP, inflation, interest rates, and trade openness together have a simultaneous effect on FDI in 6 ASEAN countries. The t-test found that GDP and trade openness have a partial effect with a positive value on FDI in 6 ASEAN countries. Inflation and interest rates have no partial effect on FDI in 6 ASEAN countries.

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Section: Pendahuluanunclassified

Analisis Determinan Foreign Direct Investment di ASEAN-6

Maharani,

Setyowati

2024

INFEB

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“…The macroeconomic conditions of a country are external elements which impact its development. (Runtunuwu, 2020;Supriani & Fianto, 2020;Yolanda, 2017). Every society faces two fundamental issues: unpredictable inflation and high unemployment.…”

Section: Introductionmentioning

confidence: 99%

“…In the case of developing countries, foreign direct investment acts as a catalyst for economic growth. The contribution of capital can support increased production of host countries, especially developing countries where the unemployment rate is high and local savings are insufficient (Putra & Suyanto, 2019;Hamdi & Hakimi, 2022;Supriani & Fianto, 2020). Foreign investment can contribute to this goal by creating jobs, developing local skills, and driving technological progress (Mbang, 2022).…”

Section: Introductionmentioning

confidence: 99%

Macroeconomics, human development and political stability: evidence from OIC countries

Dzihny,

Wibowo,

Ihsan

2023

JESP

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This study aims to examine and analyze the effect of macroeconomic variables on the Human Development Index (HDI) in the Organisation of Islamic Cooperation (OIC) countries with political stability as the moderating variable. The GMM (Generalized Method Moment) dynamic panel and the MRA (Moderated Regression Analysis) will be used for determining the type of moderation needed as analysis techniques. In the first section, the findings state that inflation and unemployment have no effect on HDI, This is due to the fact that inflation and unemployment are very dependent on global economic fluctuation. Meanwhile, trade openness has a significant positive effect on HDI and foreign direct investment has a significant negative effect on HDI. This can add to the evidence that a high level of trade openness can support HDI values in OIC countries. Trade Openness can strengthen the economy, education, and health simultaneously by increasing prosperity through increased demand, supply, and services in numerous sectors. Secondly, the value of the moderator variable (political stability) on the relationship between unemployment and HDI demonstrates that political stability acts as a "Quasi Moderator" which means that political instability can exacerbate the negative influence of unemployment on HDI in OIC countries. This research has implications for the importance of cooperation between OIC countries in various fields, especially in increasing trade, investment, job creation and good governance to support the expansion of human development in OIC nations and to build sustainable prosperity.

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“…Dengan sumber 2020), menyimpulkan bahwa Produk Domestik Bruto (PDB), produktivitas tenaga kerja, keterbukaan perdagangan berpengaruh positif terhadap FDI di negara-negara berpendapatan rendah, sedangkan inflasi, fasilitas dan infrastruktur, stabilitas politik serta kebijakan dan peraturan berpengaruh negatif. Sementara itu menurut Supriani & Fianto (2020), di 10 negara OKI yang mempengaruhi FDI adalah Produk Domestik Bruto (PDB), keterbukaan perdagangan berpengaruh positif, Inflasi berpengaruh negatif, sedangkan rasio nilai tukar dan Indeks Pembangunan Manusia tidak berpengaruh. Grace (2019), dalam penelitiannya menyimpulkan faktor yang mempengarufi FDI di Negara ASEAN-7 dan ASEAN-9 secara positif adalah Produk Domestik Bruto (PDB), inflasi, infrastruktur, penelitian dan pengembangan, sedangkan yang berpengaruh negatif terhadap FDI adalah suku bunga riil, keterbukaan perdagangan dan sumber daya manusia.…”

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Analisis determinan aliran Foreign Direct Investment (FDI) di kawasan ASEAN

Aslam¹,

Rudatin²

2023

J.Keb.Ek.U.

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Purpose – To analyze the effect of inflation, Gross Domestic Product, interest rates, Human Development Index and trade openness on Foreign Direct Investment (FDI) to countries in the ASEAN region. Methods – This study uses panel data for the 2010-2019 period in 7 (seven) countries in the ASEAN region. Findings – The results showed that inflation, interest rates and the Human Development Index had no effect on FDI in ASEAN countries, while the Gross Domestic Product (GDP) variable had a positive effect on FDI and trade openness had a negative effect on FDI in ASEAN countries. The country with the highest FDI inflows is owned by Singapore, while the country with the lowest FDI inflows is owned by Indonesia. Implication – Policies are needed to encourage the growth of Gross Domestic Product (GDP), the governments of each country in the ASEAN region need to regulate trade openness to increase FDI inflows. Originality – This study focuses on the factors influencing FDI inflows to the 7 countries of the ASEAN region. Abstrak Tujuan – Untuk menganalisis pengaruh inflasi, Produk Domestik Bruto, suku bunga, Indeks Pembangunan Manusia dan keterbukaan perdagangan terhadap Foreign Direct Investment (FDI) ke negara di kawasan ASEAN Metode – Penelitian ini menggunakan data panel periode 2010 – 2019 pada 7 (tujuh) negara di kawasan ASEAN Temuan – Hasil penelitian menunjukkan variable inflasi, suku bunga, dan Indeks Pembangunan Manusia tidak berpengaruh terhadap FDI di Negara Kawasan ASEAN, sementara variabel Produk Domestik Bruto (PDB) berpengaruh positif terhadap FDI dan variabel Keterbukaan Perdagangan berpengaruh negatif terhadap FDI di Negara Kawasan ASEAN. Negara dengan aliran masuk FDI tertinggi dimiliki oleh negara Singapura, sedangkan negara dengan aliran masuk FDI terendah dimiliki oleh Indonesia. Implikasi – Diperlukan kebijakan untuk mendorong pertumbuhan Produk Domestik Bruto (PDB), pemerintah tiap negara di kawasan ASEAN perlu mengatur keterbukaan perdagangan untuk meningkatkan aliran masuk FDI. Orisinalitas – Penelitian ini fokus pada faktor-faktor yang mempengaruhi aliran masuk FDI ke 7 negara kawasan ASEAN.

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What drives the inflow of FDI in OIC countries? Evidence from Top 10 hosts of inward FDI flows

Abstract: Purpose -This study investigates the driven factors of Foreign Direct Investment (FDI) inflow in selected OIC member countries. The selection of samples observation based on the top 10 hosts of inward FDI flows countries, includes the

Cited by 3 publications

References 38 publications

Analisis Determinan Foreign Direct Investment di ASEAN-6

Analisis Determinan Foreign Direct Investment di ASEAN-6

Macroeconomics, human development and political stability: evidence from OIC countries

Analisis determinan aliran Foreign Direct Investment (FDI) di kawasan ASEAN

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