Determinants of Foreign Direct Investment Inflows in Seven ASEAN Countries During the Period of 2010-2017: Dunning Model Approach

Setyadharma, Andryan; Fadhilah, Silvia Nur

doi:10.23917/jep.v22i1.11180

Cited by 4 publications

(6 citation statements)

References 10 publications

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“…In line with the results obtained in this study that credit and FDI can be used to formulate long-term policies in an effort to overcome unemployment (Setyadharma & Fadhilah, 2021).…”

Section: Discussionsupporting

confidence: 91%

Business Capital Funding Through the Financial Sector to Reduce Unemployment in Indonesia

Kusuma

Muthmainnah

2022

JEP

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This research aimed to study the role of the financial sector and foreign investment in increasing domestic production output. Where the increase in production output will increase the factors of production, one of which is labor. The data used in this study are annual time series data from the 2004 to 2021, and this study employed the Error Correction Model (ECM) approach to estimate the short-term effect and OLS to determine the long-term effect. The results showed that funding growth through the financial sector to the industrial sector in Indonesia has grown consistently since 2004 which has continued to encourage improved economic performance after the 1998 crisis. There is also a relationship between financial variables and fiscal policy on unemployment in both the short and long term. There are several ways to deal with unemployment both in the long term and in the short term, such as when an economic slowdown occurs. By increasing FDI, bank credit and funding in the the capital market, the private sector can continue to expand its business. This private expansion phase will increase the output of goods or services. With the increase in production output, employment will continue to be positive.

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“…In line with the results obtained in this study that credit and FDI can be used to formulate long-term policies in an effort to overcome unemployment (Setyadharma & Fadhilah, 2021).…”

Section: Discussionsupporting

confidence: 91%

Business Capital Funding Through the Financial Sector to Reduce Unemployment in Indonesia

Kusuma

Muthmainnah

2022

JEP

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“…In the past few decades, the volatility of exchange rates has affected investment decisions and profits in various companies due to the uncertain cost of raw materials if the raw materials are imported from other countries (Latief and Lefen, 2018). When the local currency depreciates, production costs will decrease and foreign investors will wait for the opportunity to put in more funds to increase production at that time (Setyadharma and Fadhilah, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Corruption is an additional expense that must be paid by companies or investors for income tax and other costs (Chamisa, 2020). Previous studies by Nairobi and Afif (2022) and Setyadharma and Fadhilah (2021) found that foreign direct investment is impacted significantly and positive by CPI. However, Chamisa found that not all countries with low CPIs have greater foreign direct investment.…”

Section: Literature Reviewmentioning

confidence: 99%

“…According to Chandra and Handoyo (2020), the value of trade openness in a country can give an idea of how open the country's economy is to outside countries. An investor not only considers the ease of exporting products but also importing quality products to improve the quality of products that may not be found domestically (Setyadharma and Fadhilah, 2021). By looking for countries with good trade openness, it can also improve business efficiency and attract foreign investors.…”

Section: Literature Reviewmentioning

confidence: 99%

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Effect of Inflation, Interest Rate, Exchange Rate, Corruption Perception Index, and Trade Openness on Foreign Direct Investment in 6 Asean Countries

Fiona,

Laulita

2023

JBSMR

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Every country faced economic instability during the COVID-19 pandemic. Despite the economic instability, some discovered that the number of foreign direct investment inflows increases in most of ASEAN countries. This phenomenon makes investors hard to predict the level of foreign direct investment within the region. The purpose of this research is to understand which are the variables that may have impact on the inflows of foreign direct investment, specifically in ASEAN countries. Therefore, the research is conducted in 6 ASEAN countries that contribute the most to the overall foreign direct inflows in ASEAN from the year 2002 to 2021. This research uses a quantitative approach with panel data regression analysis. This research is tested in both Eviews 12. The result shows that inflation and interest rates don't affect foreign direct investment inflows significantly in the 6 ASEAN countries, whereas exchange rate, corruption perception index, and trade openness have a significant effect on foreign direct investment.

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“…It influences employment scenarios, production, prices, income, imports, exports, the general welfare of recipient countries, and the balance of payments. It is an essential source of economic growth (Cieślik & Ghodsi, 2021;Setyadharma & Fadhilah, 2021).…”

Section: Foreign Direct Investmentmentioning

confidence: 99%

Determinants of Green GDP in ASEAN-5 Countries

Hidayah,

Wahyuningrum,

Kamara

et al. 2023

JEP

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The over-exploitation of natural resources to increase economic growth causes environmental degradation, and climate change has been a serious research issue. Gross Domestic Green Product (green GDP) is a proxy of Green economic growth. It is an indicator of sustainable economic development that considers aspects of environmental degradation. This study aims to determine the effect of carbon dioxide emissions, foreign direct investment, current account balance, and population on green GDP in five ASEAN countries: Indonesia, Malaysia, Thailand, the Philippines, and Myanmar. This study utilized panel data, a combination between time series and cross-section data. The panel data was examined by using the eViews 11 application. The selected model was the Fixed Effect Model (FEM). This study found that two independent variables: carbon dioxide emissions and the population had a significant positive effect on green GDP. Meanwhile, Foreign Direct Investment and current accounts do not significantly affect green GDP. Thus, the government as a regulator has a role in managing policies related to carbon emissions and population in supporting green economic growth.

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Determinants of Foreign Direct Investment Inflows in Seven ASEAN Countries During the Period of 2010-2017: Dunning Model Approach

Cited by 4 publications

References 10 publications

Business Capital Funding Through the Financial Sector to Reduce Unemployment in Indonesia

Business Capital Funding Through the Financial Sector to Reduce Unemployment in Indonesia

Effect of Inflation, Interest Rate, Exchange Rate, Corruption Perception Index, and Trade Openness on Foreign Direct Investment in 6 Asean Countries

Determinants of Green GDP in ASEAN-5 Countries

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