Dynamics of Foreign Direct Investment Manufacturing Sector in Indonesia
| Main Authors: | Mukhtar, Saparuddin, Iranto, Dicky, Adni, Riana Raudha |
|---|---|
| Format: | Article info application/pdf eJournal |
| Bahasa: | eng |
| Terbitan: |
Faculty of Economics, State University of Jakarta
, 2019
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| Subjects: | |
| Online Access: |
http://journal.unj.ac.id/unj/index.php/jpeb/article/view/12692 http://journal.unj.ac.id/unj/index.php/jpeb/article/view/12692/7627 |
Daftar Isi:
- This research was conducted to determine the short-term and long-term effects between Gross Domestic Product, Interest Rates, and Inflation on Foreign Direct Investment in the manufacturing sector for the period 2004-2017. Study applied VECM (Vector Error Correction Model), secondary data obtained from Bank Indonesia, BPS, and Bappenas. Based on the statistical results it can be concluded that: first, GDP has a positive and not significant effect in the short term, then in the long run, it has a negative effect toward FDI. Second, in the short term interest rates have a negative and not significant while in the long term interest rates have a negative and significant effect on FDI in the manufacturing sector. Lastly, inflation has a negative and insignificant effect, while, in the long-run inflation has a positive and significant effect on FDI in the manufacturing sector.