The Determinant Factors of Foreign Direct Investment (FDI) on Indonesian Economy

1Wasifah Hanim, Sugiartiningsih, Mohd Haizam Mohd Saudi

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Abstract:

Economic capacity has main role in developing countries including Indonesia, many factors can impact economic capacity in a country. This study analyses the impact of FDI on economy using cross-section regression in 2012 and 2016. The model is used Ordinary Least Square (OLS). Independent variables are Human Development Index (HDI), Labor Force in log lormal (Ln LF). Foreign Direct Investment (FDI) and Domestic Investment (DI). Dependent Variable is Economy Capacity is measured by Gross Domestic Regional Bruto in log normal (Ln GDRB). Our results suggest that foreign direct investment has positif impact on Indonesia’s economy in 2012 and 2016.

Keywords:

Foreign direct investment, Economy, Indonesia

Paper Details
Month2
Year2020
Volume24
IssueIssue 2
Pages8861-8866