Dynamics of Foreign Direct Investment Manufacturing Sector in Indonesia

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 f...

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Main Authors: Saparuddin Mukhtar, Dicky Iranto, Riana Raudha Adni
Format: Article
Language:Indonesian
Published: Fakultas Ekonomi Universitas Negeri Jakarta 2019-10-01
Series:Jurnal Pendidikan Ekonomi dan Bisnis (JPEB)
Subjects:
Online Access:http://journal.unj.ac.id/unj/index.php/jpeb/article/view/12692/7627
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author Saparuddin Mukhtar
Dicky Iranto
Riana Raudha Adni
author_facet Saparuddin Mukhtar
Dicky Iranto
Riana Raudha Adni
author_sort Saparuddin Mukhtar
collection DOAJ
description 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.
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spelling doaj.art-59fd4cbcd9524369bcff4ca65eb5cd7a2022-12-21T19:19:59ZindFakultas Ekonomi Universitas Negeri JakartaJurnal Pendidikan Ekonomi dan Bisnis (JPEB)2302-26632019-10-017215316410.21009/JPEB.007.2.7Dynamics of Foreign Direct Investment Manufacturing Sector in IndonesiaSaparuddin Mukhtar0Dicky Iranto1Riana Raudha Adni2Faculty of Economics, Universitas Negeri Jakarta, IndonesiaFaculty of Economics, Universitas Negeri Jakarta, IndonesiaFaculty of Economics, Universitas Negeri Jakarta, IndonesiaThis 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.http://journal.unj.ac.id/unj/index.php/jpeb/article/view/12692/7627foreign direct investmentgdpinterest rates
spellingShingle Saparuddin Mukhtar
Dicky Iranto
Riana Raudha Adni
Dynamics of Foreign Direct Investment Manufacturing Sector in Indonesia
Jurnal Pendidikan Ekonomi dan Bisnis (JPEB)
foreign direct investment
gdp
interest rates
title Dynamics of Foreign Direct Investment Manufacturing Sector in Indonesia
title_full Dynamics of Foreign Direct Investment Manufacturing Sector in Indonesia
title_fullStr Dynamics of Foreign Direct Investment Manufacturing Sector in Indonesia
title_full_unstemmed Dynamics of Foreign Direct Investment Manufacturing Sector in Indonesia
title_short Dynamics of Foreign Direct Investment Manufacturing Sector in Indonesia
title_sort dynamics of foreign direct investment manufacturing sector in indonesia
topic foreign direct investment
gdp
interest rates
url http://journal.unj.ac.id/unj/index.php/jpeb/article/view/12692/7627
work_keys_str_mv AT saparuddinmukhtar dynamicsofforeigndirectinvestmentmanufacturingsectorinindonesia
AT dickyiranto dynamicsofforeigndirectinvestmentmanufacturingsectorinindonesia
AT rianaraudhaadni dynamicsofforeigndirectinvestmentmanufacturingsectorinindonesia