Abstract
Globalization has made worldwide mobility of money extremely easy. The investors prefer to invest in places that offer attractive returns and are relatively less risky. The inflow of foreign direct investment (FDI) gives developing countries access to capital that would otherwise be not available. FDI also provides much needed foreign exchange and therefore helps to adjust some of the macroeconomic imbalances in developing countries. Every country is trying to attract investors by providing business friendly environment, which are quite attractive and easy to start and generate profits. The main objectives of this study are to find out the status of Indonesia as a destination for FDI; the factors that attract FDI into Indonesia and how these can be enhanced, and the factors that hinder the flow of FDI into Indonesia and how these can be reduced. The study covers a period of five years from 2014-2015 to 2018-2019. The study analysis various determinants of FDI like market size, economic growth, infrastructure, political risk, corruption, labor market, raw materials, technological readiness, innovation, financial system, taxation, cost of capital, ease of doing business and government policies. The study shows that Indonesian environment is investor-friendly and has the potential to grow. Keywords: Foreign Direct Investment, Transnational Corporations, Indonesia, Investor-friendly. JEL Classifications: F21, G11 DOI: https://doi.org/10.32479/ijefi.10330
Highlights
The high degree of globalization and modern technologies have made the movement of money across continents quite fast and cheap
The main objectives of this study are to find out the status of Indonesia as a destination for Foreign Direct Investment (FDI); the factors that attract FDI into Indonesia and how these can be enhanced; and the factors that hinder the flow of FDI into Indonesia and how these can be reduced
The main objectives of this study are to find out the status of Indonesia as a destination for FDI; the factors that attract FDI into Indonesia and how these can be enhanced, and the factors that hinder the flow of FDI into Indonesia and how these can be reduced
Summary
The high degree of globalization and modern technologies have made the movement of money across continents quite fast and cheap. Investors are in search of investment friendly destinations to invest quite heavily and collect handsome returns on investments. Asian countries have become very prominent in this regard because of the vast investment opportunities, cheap labor, geographical facilities; and are less risky but offers higher returns. The reason for choosing a particular country for investment and trade is always backed by several factors and these factors determine the attractiveness of the destination. Foreign Direct Investment (FDI) is the type of investment where the host country provides the opportunities of investment to the investor country to invest. The competition to attract FDI is increasing because of the potential benefits for the economy of the host countries and the better returns for the investors
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: International Journal of Economics and Financial Issues
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
