The need for investment as factors triggering the development of a country has a very important role. Foreign direct investment can be one of the important sources of capital in developing countries PENDAHULUANUsaha-usaha pembangunan yang dilakukan oleh negara sedang berkembang umumnya berorientasi pada bagaimana memperbaiki atau meningkatkan taraf hidup masyarakatnya, maka untuk mempercepat pembangunan ekonomi diperlukan dana yang besar. Namun dengan adanya keterbatasan modal di suatu negara akan menyebabkan rendahnya produktivitas perekonomian sehingga berakibat pada rendahnya pendapatan yang diterima masyarakat. Selanjutnya pendapatan yang rendah akan berpengaruh pada keterbatasan tabungan yang diperlukan dalam kegiatan investasi periode berikutnya.Negara-negara berkembang pada umumnya memiliki ciri negara yang kekurangan modal, tingkat tabungan dan investasi yang juga rendah. Usaha memobilisasi dana tabungan domestik melalui perpajakan dan pinjaman masyarakat tidak cukup untuk menaikkan laju pertumbuhan modal. Selain itu negara berkembang memiliki ciri keterbelakangan teknologi, ini terlihat dari biaya rata-rata produksi yang tinggi dan produktivitas modal yang rendah, sebab tenaga buruh kurang terampil dan peralatan modal yang usang. Sehingga melalui investasi dan impor modal asing akhirnya merupakan alternatif untuk menambah tabungan domestik.Keseluruhan arus modal asing dibagi dalam modal yang tidak dan yang harus dibayar kembali. Dalam kelompok arus modal yang tidak harus dibayar

This paper examines how human capital and other economic variables, such as private investment, economic growth, government investment, inflation, and unemployment influence inequality in Indonesia's provinces. We apply panel data model with fixed effect estimation for the data of 34 provinces from the period 2013 to 2019. We develop a new index for human capital using the education index approach. The results show that human capital has a negative and significant effect on income inequality. An increase in human capital is related to an increase in knowledge and competence due to the longer average school year and expectations of the school year. Human capital has increased the possibility of a person being accepted into the job market and earning a higher income; hence, it lowers income inequality. We also find that inflation leads to a higher gap of income distribution. A further implication of this situation is that the rise in inflation causes an increase in low-income people, and as a consequence, makes their lives worse off. This paper will be beneficial for policy-makers for whom human capital, which is measured using an education index, is an important factor that significantly affects income inequality, in addition to other economic factors.

Abstract-Investment is important part of development economic, especially on increase of economic growth. Through investment, various of production facilities will be provide, thus will give optimally production output and value added, as a result can improve the economic growth. Investment activities can be done by two main sectors, government and private. Majority of government investment commonly to finance physical and nonphysical development that could not be conducted by society. Lack of capital in government sector influence low of encourage on physical infrastructure as driving of business and economic activities. That condition will impact on private investment. This study will explain the effect of government investment and another economic variables, such as economic growth, investment credit, interest rate, inflation and exchange rate, and the influence of private investment on economic growth in Indonesia

This paper examines how capital flight, loan interest rates, inflation, exchange rates and economic growth influence foreign direct investment in the ASEAN-8 countries. We apply fixed effect estimation to panel data for data belonging to eight countries from the period 1994 to 2018. The results show that capital flight and economic growth have a positive and significant effect on foreign direct investment. An increase in capital flight, capital retain from sources of funds which greater than the use of funds, has encouraged foreign direct investment to increase. Furthermore, increased economic growth has stimulated foreign direct investment. We find that an increase in loan interest rate (SIBOR), inflation and depreciation of the exchange rate triggers a significant decline in foreign direct investment. This finding implies that capital retention from capital flight and economic growth are the main factors that create an increase in foreign direct investment in the ASEAN-8 countries. Meanwhile, loan interest rates (SIBOR), inflation and depreciation of the exchange rate are the risk factors that investors need to consider when investing in those particular countries. This paper is useful for policy makers in the ASEAN-8 countries to consider these five variables, as the important factors that significantly influence foreign direct investment in the ASEAN-8 countries.

This paper investigates the impact of monetary policy independence shock on bond yield by allowing for heterogeneous coefficients in the model based on panel data for 19 developing countries using quarterly data from 1991 to 2016. First, we estimate the model using conventional panel VAR estimation with the assumption of homogeneous coefficients across countries. Second, by performing Chow and Roy-Zellner tests to check the homogeneity assumption, we find that the assumption does not hold in the model. Third, we apply a meangroup estimation for panel VAR as a solution for heterogeneity panel model. The results reveal that central bank independence is effective in reducing bond yield with the maximum at period 6 after the shock. Shock one standard deviation bond yield has a negative effect on consumption and investment. We determine that central bank independence has a contradictory effect on real activity; a negative effect on consumption but a positive influence on investment for the first two years after the shock. Additionally, we split our sample into three groups to make the subgroups pool. Our empirical result shows that monetary policy independence shock reduces bond yield. Meanwhile, the response of economic activity to bond yield varies for all three groups.