The Effect of Macroeconomy Variables on the FDI Inflow in ASEAN 5

This study examines and analyzes the factors that influence Foreign Direct Investment (FDI) Inflow in ASEAN 5 (Indonesia, Singapura, Malaysia, Filipina, Dan Thailand). The difference between this study and previous research is in the area and a slight change in the variables. Interest rate, exchange...

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Main Authors: Shochrul Rohmatul Ajija, Fery Farhan Fanani
Format: Article
Language:English
Published: Universitas Negeri Semarang 2021-08-01
Series:Economics Development Analysis Journal
Online Access:https://journal.unnes.ac.id/sju/index.php/edaj/article/view/45294
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author Shochrul Rohmatul Ajija
Fery Farhan Fanani
author_facet Shochrul Rohmatul Ajija
Fery Farhan Fanani
author_sort Shochrul Rohmatul Ajija
collection DOAJ
description This study examines and analyzes the factors that influence Foreign Direct Investment (FDI) Inflow in ASEAN 5 (Indonesia, Singapura, Malaysia, Filipina, Dan Thailand). The difference between this study and previous research is in the area and a slight change in the variables. Interest rate, exchange rate, and export are used as independent variables. Meanwhile, the dependent variable is FDI (Foreign Direct Investment). This study was tested using the REM (Random Effect Model) method as the best method than PLS (Pooled Least Square) and FEM (Fixed Effect Model) method after through Chow and Hausman test. The method used in this study refers to the reference literature. The results show that interest rate, exchange rate, and export significantly affect FDI inflow in ASEAN 5. This study provides suggestions for policymakers to control price level/ inflation to maintain society's purchasing power and have trade cooperation with several countries to improve national productivity and export.
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spelling doaj.art-4418c2d9b82a4e9ba143d85ff4e477472022-12-21T18:31:12ZengUniversitas Negeri SemarangEconomics Development Analysis Journal2252-65602021-08-0110329830745294The Effect of Macroeconomy Variables on the FDI Inflow in ASEAN 5Shochrul Rohmatul Ajija0Fery Farhan Fanani1Universitas AirlanggaUniversitas AirlanggaThis study examines and analyzes the factors that influence Foreign Direct Investment (FDI) Inflow in ASEAN 5 (Indonesia, Singapura, Malaysia, Filipina, Dan Thailand). The difference between this study and previous research is in the area and a slight change in the variables. Interest rate, exchange rate, and export are used as independent variables. Meanwhile, the dependent variable is FDI (Foreign Direct Investment). This study was tested using the REM (Random Effect Model) method as the best method than PLS (Pooled Least Square) and FEM (Fixed Effect Model) method after through Chow and Hausman test. The method used in this study refers to the reference literature. The results show that interest rate, exchange rate, and export significantly affect FDI inflow in ASEAN 5. This study provides suggestions for policymakers to control price level/ inflation to maintain society's purchasing power and have trade cooperation with several countries to improve national productivity and export.https://journal.unnes.ac.id/sju/index.php/edaj/article/view/45294
spellingShingle Shochrul Rohmatul Ajija
Fery Farhan Fanani
The Effect of Macroeconomy Variables on the FDI Inflow in ASEAN 5
Economics Development Analysis Journal
title The Effect of Macroeconomy Variables on the FDI Inflow in ASEAN 5
title_full The Effect of Macroeconomy Variables on the FDI Inflow in ASEAN 5
title_fullStr The Effect of Macroeconomy Variables on the FDI Inflow in ASEAN 5
title_full_unstemmed The Effect of Macroeconomy Variables on the FDI Inflow in ASEAN 5
title_short The Effect of Macroeconomy Variables on the FDI Inflow in ASEAN 5
title_sort effect of macroeconomy variables on the fdi inflow in asean 5
url https://journal.unnes.ac.id/sju/index.php/edaj/article/view/45294
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