Direct Domestic Investment Research Articles

The Effect of Retail E-Commerce Sales and Domestic Direct Investment on the RCA Value of the Indonesian Medium High Technology Sector: RLS and FMOLS Approach

The Effect of Retail E-Commerce Sales and Domestic Direct Investment on the RCA Value of the Indonesian Medium High Technology Sector: RLS and FMOLS Approach

THE EFFECT OF FOREIGN AND DOMESTIC INVESTMENT ON ECONOMIC GROWTH WITH THE UNEMPLOYMENT RATE AS AN INTERVENING VARIABLE

This research aims to analyze the influence of Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI) on economic growth through the open unemployment rate (OUR) as an intervening variable. The research object covers Balikpapan City from 2010 to 2023. A quantitative research method is used together with the path analysis technique. The research results indicate that partially, FDI does not significantly affect the unemployment rate but has a negative and significant influence on economic growth. DDI has a negative and significant effect on the unemployment rate and a significant positive effect on economic growth. The unemployment rate has a negative and significant effect on economic growth. Based on path analysis results, the unemployment rate only successfully mediates significant influence between FDI and economic growth, but in the relationship between DDI and economic growth, it fails to mediate

ANALISIS KETIMPANGAN PEMBANGUNAN WILAYAH ANTAR PROVINSI (STUDI KASUS PULAU JAWA TAHUN 2014-2023)

Development is a multidimensional process involving transformations in social, economic, infrastructure, norms, and institutional fields with the primary goal of improving the standard of living of the people. One common issue found in the development process is the disparity that occurs due to high economic growth not being accompanied by equitable distribution. Java Island, with its superior contribution to the national economy and an economic growth rate that exceeds the national growth, is not exempt from experiencing development disparities. The purpose of this research is to analyze the variables suspected to influence development disparity in six (6) provinces in Java Island, namely DKI Jakarta, Banten, West Java, Central Java, Yogyakarta, and East Java for the years 2014-2023. The variables used are Foreign Direct Investment (FDI), Domestic Direct Investment (DDI), Human Development Index (HDI), capital expenditure, and economic growth. The research method employed is the Williamson Index and panel data regression. The research results indicate that the variable of capital expenditure has a positive effect and economic growth has a negative effect on development disparity. Meanwhile, FDI, DDI, and HDI do not affect development disparity.

Analisis Pengaruh PMDN dan PMA terhadap PDRB di Sumatera Utara

Purpose: This study analyzes the effect of Domestic Direct Investment (DDI) and Foreign Direct Investment (FDI) on Gross Regional Domestic Product (GDRP) in North Sumatra Province in the period 2001-2020. Methodology/approach: Secondary data obtained from the North Sumatra Central Bureau of Statistics were used in this study. The data analysis method used in this research was a multiple linear regression method using the Eviews 12 software. Results: The results of this study indicate that the DDI and FDI have a positive and significant effect on Gross Regional Domestic Product in North Sumatra. The coefficient of determination of 92.70% indicates that the model can explain the variation in Gross Regional Domestic Product significantly, and the coefficient value of 7.30% is influenced by other variables outside this study. Limitations: Only tests 2-factor variables that affect stock returns during a certain period are tested. Contribution: This research is expected to provide readers with a better understanding of the contribution of domestic and foreign investment to regional economic growth in North Sumatra. This research is also expected to serve as a reference for local and foreign investment policymakers to improve and stabilize regional economic growth.

Determinants of housing prices: evidence from East Coast Malaysia

Purpose The purpose of this study is designed to achieve the learning process in producing studies involving economic issues and scenarios in business management in Malaysia. In addition, this study will provide exposure to the integration of managerial skills by using both microeconomics and macroeconomics concepts and theories to aid decision-making in a business environment. Design/methodology/approach The research method comprised qualitative methodology of literature review, case study and quantitative methodology of multiple linear regression (MLR). In this case, seven microeconomics and macroeconomics factors which are believed to significantly affect house price index (HPI) are taken into consideration which includes gross domestic product, consumer price index (CPI), government tax and subsidy on housing, overnight policy rate, unemployment rate (UNEMP), the median income (INC) and cost of production index. Findings This research has resulted in three significant factors affecting HPI from MLR, which include CPI, UNEMP and INC where the increase of these factors will cause a high increment of HPI. The other four factors are not significant. Originality/value Malaysia has been facing the stagnancy in house market these recent years due to issues such as massive oversupply, impacting Malaysia’s economy specifically focusing on domestic direct investment. To avoid oversupply issues, the vitality of future house demand and pricing forecast should be comprehended by involved bodies for more effective planning for the house development industry. To make a better and bigger impact, this research is intended to analyse the microeconomic and macroeconomic factors affecting the HPI to better understand the significance of each of these factors to the changes of HPI to resolve these economic issues.

The Analysis of the Influence of Foreign Direct Investment and Domestic Direct Investment on Economic Growth in the Province of Bengkulu


 
 
 
 Investment is one of the diverse factors influencing the economic growth of a region. This research focuses on foreign and domestic direct investment in the districts and cities of the Bengkulu Province. The aim of this study is to make a significant contribution to improving the welfare of the community in this region. Additionally, the research provides guidance to policymakers in developing effective investment strategies. The method employed in this research is quantitative, utilizing the EViews software. The study uses the values of the total Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI) collected from the Bengkulu Province's Central Bureau of Statistics (BPS). It was found that FDI does not have a significant impact on economic growth, in contrast to DDI, which significantly contributes positively to the economic growth of the Bengkulu Province. It is important to note that this research was conducted in a single region and only utilized two independent variables.
 
 
 

Dampak Foreign Direct Investment, Domestic Direct Investment dan Tenaga Kerja terhadap Dinamika Pertumbuhan Ekonomi Indonesia

This research aims to analyze the impact of Foreign Direct Investment (FDI), Domestic Direct Investment (DDI), and labor on economic growth in Indonesia. This study used panel data analysis with data from 34 provinces in 2016-2021. The analysis results that FDI and DDI variables have no influence on economic growth, which is explained by the limited quality of investment in realizing economic growth. However, labor has an influence on economic growth. A large workforce will stimulate greater economic activity. So that the workforce is able to contribute to economic growth in Indonesia.

ANALISIS DEFISIT KEMBAR DAN FELDSTEIN-HORIOKA PUZZLE DI INDONESIA

This study aims to empirically examine the twin deficit and Feldstein-Horioka puzzle in the case of Indonesia period 1972-2017 and main factor that affect current account deficit in Indonesia for the last ten years. Granger’s causality is used to know the influence of budget deficit against current account balance. The Autoregressive Distributed Lag-Error-Correction Model (ARDL-ECM) approaches are applied to estimate the long run and short run relationships. The estimation results that the budget deficit is not have impact on the current account deficit in Indonesia. Meanwhile, does not occur long run cointegration based on THE ARDL. ECM results that budget deficit and investment have a short term influence the current account deficit. Based on the ARDL-ECM results, it can be concluded that the theory of Feldstein-Horioka Puzzle in the period 1972-2017 proved to occur in Indonesia. The main factor that influences the current account balance in Indonesia generally is the increase in primary income payments due to financial transactions that are always surplus and will appear forwards as payments. The condition of the current account is sustainable in a weak form means financed by financial transactions needs to be wary of negative risks in the future. The Foreign Direct Investment (FDI), Other Investments, and particularly the Portfolio Investments to prevent the occurrence of the risk of abrupt reversals which is crisis prone. So that the focus of the direction of government policy should be able to carry out stimulus to increase domestic direct investment, especially those are export oriented or substitute for domestic import needs and deepening the domestic financial market in portfolio sub-investments also other investments.

Dampak Investasi Infrastruktur Terhadap Pertumbuhan Ekonomi Di Pulau Jawa

Economic growth is a sign to achieve development success economy in society. Investment is considered as one of the factors that can increase economic growth. So it must be equipped with supporting investments this is called infrastructure investment. Economic growth and the rate of movement of a country or within the scope of the region cannot be separated from the availability of economic infrastructure, such as electricity, gas, water, transportation, warehouse, telecommunications. This study aims to determine the impact of infrastructure investment on economic growth in Java. This type of research data uses secondary data, namely: panel data consisting of time series data for 2011-2020 and cross section data for 5 provinces in Indonesia. Java Island. Data analysis using multiple regression. The results showed that PMA variables on electricity, gas and water infrastructure have a positive and not significant effect to economic growth. While the PMDN variable in electricity, gas and electricity infrastructure water, PMA variable in transportation, warehouse and telecommunications infrastructure, and variable Domestic Direct Investment in transportation, warehouse and telecommunications infrastructure has a negative and significant effect on economic growth.

Special Economic Zones: Is it an Elixir for economic growth in South Africa

With the introduction of democracy in 1994, South Africa was faced with significant issues that necessitated action to improve the levels of domestic and foreign direct investments required to accelerate economic growth. Moreover, the South African economy comprised a narrow range of exports and an over-dependence on primary production. These challenges hindered the growth within the country as well as the continent. The emergence of Special economic zones (SEZs) internationally as a policy to support industrial development targeted at incentivising economic and infrastructure development based on specific geographical areas and responding to the needs of a particular local area. This is especially useful when the government wants to extend incentives for particular activities outside designated zones. This paper is conceptual and seeks to make a critical analysis of the contribution of SEZ to the country's economy through the use of a literature review. The article further points out the extent to which jobs, foreign direct investments, and employment were triggered by SEZ use.

The Role of Foreign Direct Investment in Economic Development: A Consideration of the Chinese Experience

The study aims to highlight the importance of foreign direct investment in enhancing the country’s economic development. The work presents one of the world's leading experiences in this field, which is the Chinese experience. The purpose is to benefit from this experience and promote foreign and domestic direct investment that depends on innovation, especially in the light of the foundations and the qualifications that are available in the Arab countries, including Algeria, on the one hand, and the indicators that place them in late ranks in this field on the other hand. The study results showed that the level of creative capabilities and economic components that characterize China are great. Similarly, exploiting these components in foreign direct investment has a positive impact on fostering comprehensive economic development

Impacts of Terrorism on Economic Growth and Foreign Direct Investment in Developing Asian Countries: Malaysia, Indonesia and Philippines

Terrorism is one of the most serious, damaging, and disturbing problems nowadays. Terrorism attacks are intended to apply sufficient pressure on a government so that it grants political and economic concessions. This study aims to investigate the impacts of terrorism on economic growth (GDP) and foreign direct investment (FDI) in Developing Asian Countries: Malaysia, Indonesia, and Philippines. The panel data was collected from World Bank Data Malaysia and the Department of Statistics Malaysia from 1999 to 2016 for each selected country. This study uses the panel data regressions to analyze the data by using the Pooled Ordinary Least Square (POLS), Fixed Effect (FE), and Random Effect (RE). This study showed that gross domestic product and foreign direct investment have a negative relationship with terrorism in Malaysia, Indonesia, and Philippines. The overall research or findings of this study can guide the government to identify the ways to prevent or manage to sustain terrorist attacks without displaying economic growth and foreign direct investment consequences.

The impact of public debt on domestic and foreign direct investments in developing market: An ARDL bounds testing approach

This research investigates the effect of the components of state government debts (domestic and external debts) on the various forms of investment (domestic investment and foreign direct investment — FDI) in Sri Lanka both in the short and long terms applying the ARDL bounds testing approach over the period, 1980–2020. The previous research has revealed that higher internal and external government borrowing lowers domestic investments in both the short and long terms, confirming the crowding-out effect of public debt on the volume of domestic investment of our country. The research discovered that internal debt accumulates FDI inflows in the short term, but it crowds out FDI when considering the long term. In contrast, foreign debt has a substantial inverse connection with FDI inflows in the short term, as expected, but it does not influence FDI in the long run. The findings also showed that higher lending rates of interest share a considerably inverted connection with domestic investments, but it does not have any impact on the long-term FDIs. However, in the short term, an increase in the rate of lending interest rate decreases the prospect of external financiers and crowds out the course of FDI in Sri Lanka. Further, the depreciation of the exchange rate decreases both domestic investment and the flow of FDI in the short-run, but it encourages both types of investments in the long run

Investment Development Before and During the Covid-19 Pandemic and Impact on Regional Economy in West Java

The Covid-19 pandemic has reduced economic growth in West Java, including investment growth explained by the decline in economic growth in the Gross Fixed Capital Formation component. Moreover, the primary measure that illustrates the economic region shows how much monetary value is formed to Gross Regional Domestic Product. This study looks at the investment conditions of Foreign Direct Investment, Domestic Direct Investment, and Government Capital Expenditures before and during the Covid-19 pandemic and the effect of these investments on the Regional Economic. The multiple regression analysis methods use the data to cross-section with individual districts and cities in West Java Province and the three investment variables. The analysis results explain that the Covid-19 pandemic has reduced Foreign Direct Investment and Government Capital Expenditure, on the other hand, increased Domestic Direct Investment. This increase in Domestic Direct Investment is related to the new businesses that are strongly related to the handling of the Covid-19 pandemic. Domestic Direct Investment and Government Capital Expenditure are still being felt on the region's economy before and during the Covid-19 pandemic, but Foreign Direct Investment has decreased. Before the Covid-19 pandemic, the real impact of Foreign Direct Investment came from the first and second years after investment. In contrast, during the Covid-19 pandemic, the real impact came from three years after invested Foreign Direct Investment.

Pengaruh Perkembangan Keuangan Syariah, Investasi Langsung dan Perdagangan Internasional Terhadap Kualitas Udara Di Indonesia

This study aims to analyze the influence of the development of Islamic finance, direct investment, and international trade on air quality in Indonesia. This research is a quantitative research using panel data. The type of data used is secondary data from 33 provinces in Indonesia from 2017 to 2019. This study uses the Random Effect Model as the best estimation model. The results showed that the variables of Islamic banking financing, domestic direct investment, and international trade (export-import) had a negative and significant effect on air quality in Indonesia. The results of this study prove the hypothesis of the pollution haven effect and the scale effect in Indonesia.

Domestic vs Foreign Direct Investment, Economic Growth and Productivity in Southeast Europe

Domestic vs Foreign Direct Investment, Economic Growth and Productivity in Southeast Europe

Determinants of Domestic Value Added in Exports: Empirical Evidence from India’s Manufacturing Sectors

Over the last decade, trade policy reforms have significantly influenced the internationalization of Indian manufacturing firms, leading to deeper participation of the country in global value chains (GVCs) and international production networks (IPNs). With the growing participation of foreign firms in the value chain, the domestic value-added (DVA) content embodied in Indian exports have displayed a declining trend. Recently, in 2020, India has decided to launch the ‘Atmanirbhar (self-reliant) Bharat Abhiyan’, which, in principle, aims to consolidate the manufacturing sector, leading to increasing DVA embodied in exports (DVA-content), apart from employment generation. The current article attempts to analyse the drivers of India’s DVA in exports for select manufacturing industries over 2000–15 by using the OECD trade in value added (TiVA) database. The empirical results reveal that sectoral DVA content is positively influenced by both domestic capital and foreign direct investment (FDI), and labour skill intensity, but negatively influenced by the presence of unskilled workers. Moreover, FDI inflows in sectors characterized by high skill-intensity and high-relative growth rate play a crucial role in influencing DVA content. Finally, the presence of larger and more capital-intensive firms is found to be a major driver of DVA. On the policy front, therefore, the empirical results underline that export promotion policies alone will not be able to resolve employment worries, a major concern in India, as vast numbers of unskilled and low-skilled workers trapped in the agricultural sector or working in unorganized and micro-industries fail to figure in the country’s export value addition. A concerted effort towards labour skill enhancement as well as technology transfer is necessary for exports to play a more positive role.

Analysis of Middle Income Trap in Indonesia Era President Joko Widodo

This study aims to analyze the Middle Income Trap (MIT) in Indonesia under President JokoWidodo (2014-2020). GNI per capita is the main indicator used in determining whether a country is included in the MIT category or not. Factors suspected of influencing GNI per capita are Domestic Direct Investment, Foreign Direct Investment, Exports, Imports and the Infrastructure Budget. Data is sourced from the World Bank, BPS and other media. The year 2020 is the minimum time to establish as a Middle Income Country. The results of the study show that Indonesia has entered the MIT trap starting in 2020. From the results of the partial test and the simultaneous test, it can be concluded that Domestic Direct Investment, Foreign Direct Investment, Exports, Imports and the Infrastructure Budget have no significant effect on GNI per capita. The challenge faced by Indonesia in order not to be trapped in MIT is that Indonesia must increase its economic growth >6% per year. In order to get out of the MIT trap, it is necessary to map out investment priorities in order to optimize added value and at the same time absorb labor. The impression is liberating on investors, as a result investors prefer to service sectors that are capital intensive, not labor intensive.

Does the Covid-19 Outbreak Impacts On Economic Growth? An Evidence from Indonesia

This study aims to analyze the effectS of the COVID-19 pandemic, labor, domestic direct investment (DDI), AND foreign direct investment (FDI) on economic growth in Indonesia. The type of data used in this study is panel data, which is a combination of cross-section and THE time series data (Silvia, 2020). The cross-section data involves 34 provinces and time-series data covers the period from the first quarter of 2018 to the second quarter of 2021. The result found out that the regression coefficient of labor has a positive and significant effect at the 5 percent level, which means that if the number of workers increases by 1 percent, economic growth will increase by 0.03 percent. Furthermore, the FDI variable also has a significant and positive effect on economic growth in Indonesia. We can see in table 3.2 that the FDI variable is significant at the 5 percent level with a regression coefficient of 0.012, this means that an increase in FDI by 1 percent will accelerate economic growth by 0.012 percent. From the results of data processing obtained by the author, it can be seen that the DDI variable has a positive but not significant effect on economic growth in Indonesia, this can be seen from the p-value which is greater than 5 percent. The regression coefficient of -0.001 proves that the COVID-19 pandemic has a negative impact on economic growth in Indonesia. When the COVID-19 pandemic reached the territory of Indonesia, economic growth slowed by 0.001 percent.

Chinese Universities Mobilise FDI and DDI for the City’s Innovativeness in the ICT Sector

Abstract We explored whether university populations (intensity) moderate the link between FDI (foreign direct investment) or DDI (domestic direct investment) and the city’s innovativeness in the ICT sector. With the moderating role of universities between resources and the city’s development level, we relied on institutional theory. Institutional theory combines the technical and symbolic concepts (network structure) of the university. With panel data based on 5166 observations from 287 Chinese cities over 18 years (1999 to 2016), we used the maximum likelihood method to test hypotheses for direct and indirect effects. The direct effect of baseline hypotheses represents the FDI and DDI; university intensity has a moderating effect. In the former case, the FDI and DDI positively correlate with the city’s innovativeness in China’s ICT sector. In the latter case, the population of universities in the city positively moderates the relation between these resources and the city’s development level. These findings contributed to the literature at three levels. First, the study contributes to ICT development and the city’s innovativeness in the research context. Second, the study contributes to university intensity as a resource mobilizer in institutional theory, emphasising that interinstitutional interaction supports resource flow for better performance in certain geographical locations. Third, the study contributes to policy- and practice-related issues related to city development, the smart environment, and ICT development as an enabling infrastructure.