Analisis Perwilayahan Pembangunan dan Iklim Investasi di Provinsi Bengkulu

Nearly all developing countries actively seek capital and technology from the advanced countries. Although private direct foreign investment (mainly in the form of multinational enterprise) is viewed with ambivalence by many developing countries, it is nonetheless true that direct investment remains a substantial source of capital and is sometimes the only source of specific technologies. Indeed, given the slow growth in official external assistance, developing countries are becoming more, not less, dependent on direct foreign investment. While disbursements of official development assistance by the OECD countries rose 43% from 1961 through 1970, direct investment flows rose almost 90% over the same period. In the later year, the flow of direct investment was more than two-fifths of all official assistance, $3.2 billion compared to $7.8 billion.1 Furthermore, the United States and other major capital exporting countries would prefer, for economic as well as ideological reasons, to channel more of their capital outflows to developing countries through private investment. It is highly probable, therefore, that developing countries will continue to rely on direct foreign investment in the foreseeable future to carry out their development programs. It is against this background that the present study seeks to identify the empirical determinants of direct foreign-investment flows in the manufacturing sectors of developing countries. Our purpose is to select from the many economic, social, and political features of a developing country those features that are critical to making that country attractive or unattractive to private foreign investors. Available empirical studies are limited

Does foreign investment crowd in domestic investment? Evidence from Vietnam

During the late 1970s and early 1980s, many African countries experienced a profound slowdown in economic growth. The growth rate of real per capita GDP fell from 0.4% per year during the 1973-80 period to 1.2% per year during the 1980-89 period.' The causes-internal and external-of Africa's economic decline and the strategies for restoring economic growth are much debated. Nevertheless, broad consensus has emerged on the importance of (i) increasing total investment and (ii) promoting private-sector development and increasing its share of total investment for long-term growth.2 It is widely recognized that gross domestic investment fell substantially in Africa during the 1980s and remains severely depressed across the region. The proportion of total domestic investment in GDP fell from 20.8% per year during 1973-80 to 16.1% per year during 1980-89. In some countries, investment has fallen to less than 10% of GDP-a level that is insufficient even to replace depreciated capital. In Africa, the minimum investment needed to replace depreciated capital is estimated at 13% of GDP.3 In recent years, there has also been a growing recognition among many African leaders, faced with new realism and pragmatism, that the private sector could play a significant role in economic development. The focus in the longer term of structural adjustment programs and sectoral reforms adopted by these countries is on creating more appropriate incentives and a framework for private-sector development as the basis for achieving sustainable economic growth. In addition, multilateral and bilateral institutions have developed new initiatives with priorities for private-sector development. In 1989, the International Finance Corporation, an affiliate of the World Bank, es-

This research aimed to know comparative Regional Board of Investment Performance in Indonesia and examined effect of foreign and domestic investment on economic growth. Sample used in this research is 34 Board of Investment and Integrated Licensing (BPMPTSP) of the provinces in Indonesia in 2015-2018 that determined by purposive sampling method. Data used is secondary data of target and realization of foreign and domestic investment from BKPM and PDRB rate from BPS. Data analysis technique used is average of total realization of investment, average growth per year of investment (CAGR ratio), average ratio of investment target achievement (Effectiveness ratio). To examined effect of investment on economic growth used data panel regression analysis. Result of average of total realization of investment analysis show that West Java Province has best performance on foreign investment, while East Java as the best province on average realization of direct investment. West Sulawesi Province has the best performance measured by average growth of foreign investment, while Maluku is a province with best performance based on ratio of average growth of domestic investment. Analysis of target achievement that used effectiveness ratio show that North Sulawesi has the best performance on achieved the investment target. F- test result show that simultaneously there are significant effect between foreign and domestic investment on economic growth. Based on t-test result, partially there are significant effect between foreign and domestic investment on economic growth.

This study explores the intricate relationships between monetary policy, inflation rates, and foreign direct investment (FDI) and their collective impact on economic growth in developing countries. Utilizing a comprehensive review of existing literature, this research aims to provide a nuanced understanding of how these macroeconomic factors interact to influence economic development. Monetary policy, often implemented through adjustments in interest rates and money supply, is critical in shaping economic stability and growth. The study reveals that effective monetary policy in developing countries can stimulate economic activity by fostering an environment conducive to investment and consumption. However, the impact of such policies is contingent upon the stability and credibility of the governing institutions, which are often variable in developing regions. Inflation rates, which reflect the general rise in price levels, were found to have a complex relationship with economic growth. Moderate inflation can stimulate spending and investment by reducing the real burden of debt and encouraging consumption. In contrast, high inflation can erode purchasing power and deter both domestic and foreign investment, thereby stifling growth. This study underscores the importance of maintaining inflation within a manageable range to support sustainable economic growth. Foreign direct investment is identified as a key driver of economic development, providing capital, technology transfer, and employment opportunities. The research highlights that FDI can significantly enhance economic growth by supplementing domestic capital, improving infrastructure, and fostering industrial diversification. However, the benefits of FDI are maximized when complemented by stable economic policies and a favorable investment climate. In conclusion, the interplay between monetary policy, inflation, and FDI is crucial in shaping the economic trajectories of developing countries. The study suggests that balanced and coherent policy frameworks are essential to harnessing these factors for sustained economic growth. Future research should explore country-specific dynamics to better understand the differential impacts across various developing economies.

We investigate causal links between human capital, foreign direct investment (FDI), trade openness, domestic investment, and economic growth for the case of Pakistan. In a multivariate vector autoregressive (VAR) framework, we apply Johansen and Juselius co-integration, Granger causality, and vector error correction model (VECM) using annual data from 1980 to 2017. Results of the co-integration analysis indicate the positive association among human capital, trade openness, foreign direct investment, and economic growth for the long run. Granger causality reveals that bidirectional causality exists between human capital and trade openness, human capital and economic growth, and foreign direct investment and trade openness. The unidirectional results of Granger causality analysis reveal that human capital and domestic investment influence economies growth through FDI, and trade openness influences economic growth through domestic investment. The most obvious finding to emerge from this empirical investigation is that human capital and trade openness enhance domestic and foreign investment, which leads to the economic growth of Pakistan.

THIS DISSERTATION examines the short-run relationships between domestic and foreign investment of U.S. manufacturing firms and the financing of such investment. A short-run framework provides results relevant to American balance-of-payments policy; in the long run, repatriated earnings, fees and royalties, and (possibly) increased exports offset some or all of the initial balance-of-payments cost of direct investment. Thus, if direct investment outlays are recouped in the U.S. balance-ofpayments, changes in such outlays affect primarily the timing of balance-of-payments deficits. To maximize a discounted stream of worldwide profits, management of a firm makes interrelated decisions concerning domestic and foreign investment. To the extent that foreign and domestic investment are related, foreign investment, and therefore balance-of-payments flows, will be related to the level of domestic economic activity as it impinges on the firm. In addition, the financing of direct investment may be related to domestic activities of the firm. The decision variables in the study are foreign and domestic plant and equipment expenditures, dividend payments to stockholders, and outflow, defined as net capital outflow less repatriated profits. The last variable represents the immediate effect of direct investment on the balance of payments. In general, foreign investment is a function of sales changes, foreign and domestic income, foreign depreciation allowances, dividends, domestic investment, and the leverage of the firm. Specifically, inducement to invest is represented by lagged sales changes and by expected sales changes, as proxied by the firm's stock price relative to the stock market. The domestic investment equation is specified analogously. The dividend equation follows a typical partial adjustment form but allows for separate reaction to a transitory component of current income. Dividend policy is also allowed to respond to investment and leverage. Net outflow is expected to be positively related to both domestic income and foreign investment and negatively related to foreign income, dividends, and domestic investment. It may be negatively related to domestic investment even if foreign and domestic investment are not substitutes. Separate firm intercepts are used to control long-run differences between firms, and thereby to isolate short-run behavior. Appropriate scaling is made to adjust for existing interfirm differences in foreign activity. The data are then normalized by previous-year capital stock of the appropriate sector (foreign, domestic, or total) of each firm. Two-stage least squares estimation is applied to annual data for 63 large U.S. manufacturing firms. Estimation is for the period 1961-1966, a period in which direct investment was relatively free from capital restrictions of host countries and the United States. A dummy variable represents the impact of firm-level targets in the 1966 U.S. voluntary balance-of-payments program. Its positive but insignificant coefficient suggests that firms, anticipating stricter controls, may have increased their foreign investment.

The article analyzes the factors affecting China’s investment attractiveness, the features of creating a favorable investment climate in China, and investigates new trends of FDI in China. The article highlights the main directions of attracting foreign direct investment in the Chinese economy. The paper aims to systematize the theoretical aspects of the state’s investment attractiveness and analyze the investment attractiveness of the Chinese economy at the present stage of development. The purpose of the article is to determine the PRC’s contribution to global sustainable development, taking into account the fact that the PRC is strengthening its position in the world arena due to the inflow of foreign investments. The article initially examines the role of foreign direct investment in the development of the state’s economy. Each country has a specific approach to attracting foreign investment, which is predetermined by the level of socio-economic development, the degree of external openness, and the established objectives. Therefore, the first stage of the research was an analysis of investment inflows and outflows. Changes that took place due to the implementation of the “open door” policy were considered. Then the advantages and disadvantages of China’s policies aimed at stimulating foreign investment were analyzed in detail. We studied the state and dynamics of investment processes in the PRC, examined the specifics of the regional and sectoral structure of foreign investment in China, evaluated the economic essence and classification of foreign investment, forms and methods of state regulation of foreign investment, as well as some aspects of the legal regulation of investment activity in China. We have systematized the main advantages and risks of the PRC investment climate. It was found that, despite the significant investment attractiveness of China, there are many investment risks. Still, the Chinese government continues reforms aimed at improving the investment climate of the state. A review of China’s position in the ratings of investment attractiveness, such as the Ease of doing the business score, the Global Competitiveness Index, and the Global Sustainable Competitiveness Index was carried out. It was made an intermediate conclusion that foreign capital is increasingly rushing to developing countries, especially to the dynamically developing economies of the BRIC countries, the undisputed leader in attracting foreign investment among which is China. The work results give every reason to predict the growth of foreign investment in the PRC’s economy since the country is characterized by stable and positively dynamic development. It is also assumed that the inflow of investments into the PRC’s economy is reciprocal since China is smoothly turning from a recipient of investments into an investor ready to contribute to global sustainable development.

Актуалізовано виключне значення іноземного інвестування в розвитку країн. Представлено статистичні дані щодо сумарних обсягів прямих іноземних інвестицій в економіці України протягом 2010—2017 рр. Ідентифіковано причини низького темпу приросту прямих іноземних інвестицій в українську економіку за останні роки. Узагальнено позиціонування України у світових міжнародних рейтингах. Продіагностовано географічну структуру прямих іноземних інвестицій. Акцентовано увагу на проблематиці надходження інвестицій з офшорних зон. Визначено чинники, що визначають низький рівень інвестиційної привабливості України, які диференційовано за двома блоками: перший з яких визначається характеристиками держави як системного об’єкта інвестування, другий – несприятливим інвестиційним кліматом. Акцентовано увагу на низькому стимулювальному впливі прямих іноземних інвестицій на становлення виробництв вищих п’ятого і шостого технологічних укладів. Обґрунтовано пріоритетні напрями активізації іноземного інвестування: створення сприятливого інвестиційного клімату в країні, забезпечення відповідності розподілу прямих іноземних інвестицій стратегічним завданням економічного розвитку держави. Відзначено об’єктивну необхідність реального, а не декларативного поліпшення інвестиційного клімату, зменшення бюрократичних процедур, спрощення регуляторно-реєстраційних вимог і вжиття радикальних заходів щодо дієвого захисту інвестицій, розроблення і імплементацію раціональної інвестиційної концепції, яка забезпечить підвищення інвестиційної активності за наявності певних економічних передумов.

This paper explores the interconnected dynamics between governance, public debt, and domestic investment (also known as gross fixed capital formation (GFCF) in South Africa). It also highlights domestic investment as a key driver of economic growth, noting a consistent decline in investment since the country’s democratic transition in 1994. Moreover, this downward trend is exacerbated by excessive public debt, poor governance, and increased economic risks, discouraging domestic and foreign investments. The analysis incorporates two theoretical perspectives: endogenous growth theory, which stresses the significance of local capital investment and innovation, and institutional governance theory, which focuses on the role of governance in promoting economic development. The study reveals that poor governance, rising debt, and high economic risks have impeded GFCF and economic stability. By utilizing quantitative data from 1995 to 2023, the research concludes that reducing public debt, improving governance, and minimizing economic risk are critical to revitalizing domestic investment in South Africa. These findings suggest that policy reforms centered on good governance, effective debt management, and economic stabilization can stimulate investment, promote growth, and address the country’s economic challenges. This study offers insights into how governance and fiscal policies shape investment and capital formation in a developing nation, providing valuable guidance for policymakers and stakeholders working towards sustainable economic growth in South Africa.

This study investigates the determinants of macroeconomic stability and sustainable growth in Pakistan using an Autoregressive Distributed Lag (ARDL) bounds testing approach. Drawing on annual data spanning 1970 to 2023, the analysis explores the dynamic interactions among GDP growth, money supply, fuel imports, foreign direct investment, oil prices, and inflation. The ARDL bounds test confirms a long-run cointegrating relationship among these macroeconomic variables, indicating that they move together over time. Long-run estimates suggest that increases in money supply and fuel imports are associated with higher GDP growth. At the same time, elevated inflation and foreign direct investment significantly negatively impact economic performance. Foreign direct investment shows strong positive effects in the short term. However, inflation and lag-fueled imports have more complicated impacts on GDP growth, which are reflected as delayed negative influences. Diagnostic tests for autocorrelation and heteroskedasticity support the model's accuracy, and the mistake correction mechanism points to a rapid adjustment process with deviations from the long-run equilibrium being corrected at an annual rate surpassing 130%. These findings emphasize the need for stabilizing inflation, ideal foreign investment policies, and different energy sources to produce resilient macroeconomic stability and sustainable economic growth in Pakistan.

Stuart R.Lynn’s statement, on the advanced countries, Gross Domestic Product (GDP) was affected dominantly by investment productivity rather than by its investment. Meanwhile, on the developing countries, GDP was affected dominantly by investment rather than by the productivity. Within connection of Lynn’s proposal, t he purpose of this research is to find out the influence of investment and investment productivity of domestic, foreign, and government on Gross Domestic Regional Product (GDRP) of DKI Jakarta region with the purpose to investigate: how far the influences of investment and investment productivity of domestic, foreign and government simultaneously and partially on GDRP of DKI Jakarta region and to analyze the difference of the influence among the kind of investment and its productivity on GDRP of DKI Jakarta region. This research used explanatory study that is to explain relationship among variables and hypotheses testing about the existence of the relationship among variables. Research data are secondary data concerning GDRP, domestic investment, foreign investment, and government investment which collected since 1991 up to 2007. The hypotheses about influences of domestic, foreign and government investment and their productivity on GDRP, both simultaneously and partially, are tested using Multiple Linear Regression Analysis through the Ordinary Least Square method under 5% level of significance. The influences of domestic, foreign and government investment and their productivity simultaneously on GDRP of DKI Jakarta region are significant and very strong. Partially, government investment, government investment productivity and domestic investment productivity has positive effect on GDRP. Foreign investment productivity has negative effect, while the influences of domestic and foreign investment don’t have significant impact. Besides, this research has found differences of the influence among the kind of investment and among the kind of investment productivity. However, GDRP growth was more affected by the government investment. It has been revealed that the influence of government investment is stronger than its investment productivity. It is also shown the influence of domestic investment is stronger than its investment productivity. For foreign investment, the influence of the investment has positive sign, meanwhile the investment productivity has negative sign. The elasticity trend of productivity of domestic and foreign investment increased, meanwhile elasticity of government investment decreased. Also it has been found the existence of negative correlation among investment with its productivity consistently from domestic, foreign and government sources. This research succeed to prove that GDRP of DKI Jakarta is more influenced dominantly by accumulation of investment rather than by its productivity. The result of this research recommends that the investment productivity factor is the factor that must be attention and more increasing it’s role by every stakeholder. That’s mean to decrease load of investment accumulation that’s forever using the capital addition.

The article deals with the lack of financial resources in the domestic market and the prospects for the recovery of the national economy linked to external factors. The volume of foreign direct investment in Ukrainian economy in 2018 was 60 % of the pre-crisis level. To attract foreign investment, it is necessary to create a favorable investment climate and increase the competitiveness of the national economy. The success activities in attracting investments can be assessed using next ratings: raising the country by one point can lead to an increase in foreign direct investment by $ 250-500 million next year. Ukraine has climbed five steps in the Doing Business 2019 ranking, but the volume of foreign direct investments has not changed significantly. In addition, more than half of the investments that are classified as foreign come from countries that are attractive for favorable taxation, that is, probably has a Ukrainian origin, so-called "round-tripping". Thus, the steps taken do not solve the issue of attracting foreign investment, which requires finding alternative ways to attract funds from abroad. One of them is the transfer of migrant workers home. Such transfers are received exclusively in a freely convertible currency, do not result in a requirement to return the funds received in the future, are evenly distributed across the country's regions and are characterized by a low concentration. Over the past five years, transfers of migrant workers to their homes have exceeded foreign direct investment in Ukraine every year. They also exceeded the losses of the country's economy from the reduction in the number of workers. At the same time, the experience of the leading countries shows, that in the long term, sustainable economic growth is possible only with a stable increase in the number of workers. Accordingly, the labor migration of Ukrainians abroad should be compensated by immigration flows from less developed countries. Otherwise, the lag between the Ukrainian economy and the world's leading countries will be maintained or even increased, primarily due to the inability to ensure high GDP growth rates. Reducing the negative consequences of labor migration requires the development of an effective migration policy. Keywords: economic growth, investment climate, foreign direct investment, labor migration.

Despite the large body of research on foreign direct investment, domestic savings, domestic investment and economic growth, little has been done to investigate the relationships among them. This paper examines the relationships among foreign direct investment, domestic savings, domestic investment, and economic growth in 16 Sub-Saharan African (SSA) countries from 1981 to 2011, using various techniques. The results of VAR estimation and Granger causality tests demonstrate that there is a unidirectional causality from foreign investment to growth and domestic investment, savings to growth, and a bidirectional causality between growth and domestic investment as well as savings and domestic investment. The results of the variance decomposition analysis reveal that foreign investment exerts more influence on growth. Savings are more important in explaining domestic investment, growth is more important in explaining foreign investment, and domestic investment is more important in explaining savings. Based on the results of the impulse response analysis, there is a positive unidirectional causality from foreign investment to growth and domestic investment, savings to growth, and a positive bidirectional causality between savings and domestic investment, both in the short and long-run. Although there is feedback causality between domestic investment and growth, the impact from investment is negative in the short-run and positive in the long-run. Thus, policies that encourage foreign investment and savings are required to boost domestic investment and promote growth, and policies that raise domestic investment will lead to higher savings and growth in SSA.

The purpose of the article is to study the impact of investment flows on the economic development of Ukraine, Azerbaijan, and Uzbekistan, considering foreign investment, as well as to assess their contribution to the formation of sustainable economic growth. The methodology is represented by such methods of scientific knowledge as economic analysis, as well as SWOT analysis (Strengths, Weaknesses, Opportunities, Threats). The results of the study showed that foreign investment has a positive impact on the economic growth of developing countries, contributing to an increase in gross domestic product, reducing unemployment and stimulating technological progress. In addition, investment flows influence structural changes in the economy, facilitating the transition to more innovative and competitive arrangements. Additionally, successful attraction of foreign investment can improve the infrastructure and environmental situation in countries, which also favours their economic development. At the same time, the results of the study highlight the importance of creating a favourable investment climate to attract foreign investment and ensure sustainable economic growth, both now and in the future. However, it is important to understand the possible negative aspects of the impact of investment on the economy, including the issue of increased risks in the formation of dependence on foreign subsidies. The findings highlight the importance of seeking and attracting foreign investment to improve the economic performance of emerging market economies, as well as to stimulate sustainable economic growth and promote the integration of these economies into the global economic system, while minimizing negative impacts.