Domestic Investment Research Articles

RETAINING EMPLOYEE COMMITMENT: UNDERSTANDING FACTORS IN RETENTION MANAGEMENT AT THE MINISTRY OF INVESTMENT/BKPM A CASE STUDY IN THE NON-INDUSTRIAL LICENSING DIRECTORATE

This research aims to determine the factors that influence employee retention and commitment within the Directorate of Non-Industrial Licensing at the Ministry of Investment/BKPM. The main goal is to understand how job satisfaction, organizational support, and career development influence employee retention. This research addresses the challenge of retaining a high-performing and committed workforce, which is critical to achieving the Ministry's strategic objectives. The Ministry of Investment/BKPM, since its transformation from BKPM, has made a significant contribution to increasing foreign and domestic investment through improving licensing and facilitation processes. This research was conducted through a qualitative approach using the triangulation method to obtain comprehensive employee insight. The internship program is focused on analyzing retention management practices, organizational support systems, and career development opportunities in the Ministry. Key accomplishments include detailed assessments of employee perceptions of job satisfaction, effectiveness of organizational policies, and clarity of promotion processes. Based on these findings, several recommendations are proposed to improve retention strategies. Continuous evaluation and improvement of organizational practices, policies and processes is essential. Factors such as a supportive work environment and fair treatment were identified as important factors for employee commitment, while ambiguity in the promotion process was an issue. Future internship programs should focus on analyzing these aspects more thoroughly and implementing regular feedback sessions to understand employee perspectives better. This will help in increasing employee commitment and satisfaction.

Spatial and temporal differentiation and its driving factors of air quality in the economic circle of Shandong Province during 2013–2020

As the negative repercussions of environmental devastation, such as air quality decline and air pollution, become more apparent, environmental consciousness is growing across the world, forcing nations to take steps to mitigate the damage. China pledged to achieve air quality improvement goal to combat global environment issue, yet the spatial-temporal differentiation and its driving factors of environment-meteorology-economic index for air quality are not fully analysed. To promote regional collaborative control of air pollution and achieve sustainable urban development, spatial and temporal different and its driving factors of air quality in Shandong Province during 2013–2020. Results revealed that concentrations of sulfur dioxide (SO2), nitrogen dioxide (NO2), particulate matter 2.5 (PM2.5), particulate matter 10 (PM10), and carbon monoxide (CO-95per) exhibited decreasing trend (SO2 concentrations decreasing 84 % and CO-95per concentrations decreasing 90 %). Air quality was improved from inland areas to coastal areas. Pollutant indicators of SO2, NO2, PM10, PM2.5, and CO-95per demonstrated significant positive correlation (P < 0.05). Air temperature and precipitation are significantly negatively correlated with concentrations of SO2, NO2, PM10, PM2.5, and CO-95per but significantly positively correlated with ozone (O3-8 h). SO2, NO2, PM2.5, PM10, CO-95per, and proportion of days with heavy pollution are strongly positively correlated with proportion of secondary industry but strongly negatively correlated with proportion of tertiary industry and volume of household waste. Except for O3-8 h, pollutant index of Provincial Capital Economic Circle (PCEC) and Southern Shandong Economic Circle (SSEC) has significant negative correlation (P < 0.05) with regional gross domestic product and investment in environmental protection; however, investment in environmental protection of Eastern Shandong Economic Circle (ESEC) has no significant correlation with air pollution index. There was significant negative correlation between vegetable sowing area and SSEC pollutant index. The relationship between pollution emission and investment in environmental protection has shifted from high pollution-low investment to low pollution-low investment in PCEC, ESEC and SSEC, and the inflection point was in 2020 for PCEC, 2019 for ESEC, and 2020 for SSEC. Those results provide empirical evidence and theoretical support for the improvement of regional air quality, aiming to achieve high-quality development. According to these findings, it has been found that meteorological elements, pollutant emission, socio-economic factors and agricultural data affect air quality. Those results could provide meaningful and significant supporting for synergistic regulation of diverse pollutants.

The effects of weather factors on road traffic casualties: Analysis on provincial panel data of China from 2006 to 2021

IntroductionRoad traffic injuries stands as a major concern globally, as they result in significant loss of life, economic impact, and erode trust in government and societal safety. The influence of weather on road traffic safety is undeniable, impacting road conditions, individuals, and vehicles. However, the specific influence of weather on road traffic casualties has seldom been explored. MethodThis study assesses the effect of weather factors on road traffic casualties in China from 2006 to 2021. Vector error correction models (VECM) were utilized to determine the Granger causality between weather factors and covariates. Furthermore, panel autoregressive distribution lag models (ARDL) were applied to quantify the association between weather factors and road traffic casualties. ResultsThe findings indicate that rainfall and temperature exert a short-term negative impact on casualty risk, which intriguingly becomes positive in the long term. A standout discovery is the significant role of health investments, which are shown to reduce casualty numbers in both the short and long-terms. In the long run, the gross domestic product significantly enhances casualties, while expressway mileage notably decreases them. ConclusionsThese results demonstrate the significant influence of weather on road traffic casualties and highlight the critical roles played by factors such as gross domestic product, health investment, and expressway mileage. The evidence presented in the study underscores the urgent need for more effective strategies to mitigate road traffic casualties. Thus, some effective measures are proposed to reduce road traffic casualties. This study is conducive to the improvement of traffic in severe weather in China and provides guidance for traffic management departments.

Innovation and economic growth: An empirical analysis for African countries

In recent decades, innovation has become recognized as a key driver of economic growth. This study investigated the relationship between innovation and economic growth in 32 African countries from 2006 to 2017. The linear regression panel corrected standard errors (PCSEs) regression estimation was used to analyze the data. PCSE estimation accounted for heteroskedasticity and possible contemporaneous correlation across panels. The findings showed a positive association between the innovation index and economic growth. This result remained true even when research and development (R&D) expenditure (the conventional measure of innovation) was considered for a handful of countries. This finding highlights the significance of innovation in fostering economic growth. The study also found that domestic investment and human capital encouraged economic growth. The study estimated an endogenous growth model with an alternative measure of innovation. Based on the findings, the study recommends that African countries provide financial and material support for R&D in public and private institutions through funding, imparting entrepreneurial research attitudes in academics, and providing an enabling environment for business enterprises.

THE ROLE OF DOMESTIC INVESTMENT IN POVERTY REDUCTION IN 11 PROVINCES IN JAVA, BALI, NTT, NTB AND MALUKU

This study aims to investigates the role of domestic investment in reducing poverty in 11 provinces in Indonesia, specifically Java, Bali, East Nusa Tenggara, West Nusa Tenggara, and Maluku. This study employs a quantitative framework, utilizing panel data analysis to investigate trends across selected regions. The findings support region-specific economic strategies that boost growth and reduce poverty by encouraging local investment to reduce poverty and improve living standards. The research highlights the importance of domestic investment in promoting inclusive growth and improving social welfare in Indonesia. This research represents a novel inquiry, as the study of the panel data pool model across 11 provinces provides a wider perspective by emphasizing the importance of domestic investment in promoting inclusive growth and improving social welfare in Indonesia.

Can FinTech promote enterprise cross-region investment? ——Evidence from China

Cross-region investment by enterprises, through the integration of resources from different locations and the expansion of market spaces, has become a crucial engine for promoting high-quality regional economic development. However, the geographical restrictions of traditional financial services significantly hinder enterprise expansion across regions. The emergence of financial technology offers fresh perspectives for addressing this challenge. This paper investigates whether financial technology can stimulate cross-region investment behaviors among enterprises using data from Chinese A-share listed companies from 2009 to 2020. The findings reveal that financial technology significantly facilitates cross-region investment by enhancing the quality of information disclosure, alleviating financing constraints, and advancing digital transformation in enterprises. These conclusions have been validated through a series of robustness tests. However, the impact of financial technology exhibits heterogeneity based on factors such as the ownership structure of the enterprise, industry type, and the degree of capital market openness. Further research indicates that while financial technology-promoted domestic cross-region investments enhance returns on investment, this is not the case with foreign cross-region investments. Our findings unveil new mechanisms through which financial technology promotes cross-region investments in enterprises, offering novel perspectives and strategic recommendations for emerging market countries to fully exploit the potential of financial technology and solve the challenges of cross-region investment. It has significant theoretical value and practical implications for optimizing resource allocation efficiency and promoting balanced and coordinated regional economic development.

Domestic Private Investment and Selected Macroeconomic Indicators in Nigeria:An Econometric Analysis

Domestic private investment (DPI) plays significant role in economic growth of any economy. It helps in mobilizing domestic resources for socio-economic advancement. Domestic Investment and its determining factors remains one recalling issues in the field of economics and international finance. This is based on the fact that aggregate investment plays a dominant role in stimulating economic growth and development of every nation. However, most of the developing and underdeveloped economies have witnessed low domestic investment and consequently slow economic growth. Therefore, this study investigates the relationship, trends, and impact of domestic private investment and selected macroeconomic indicators in Nigeria, a developing economy. The study analyzed data gotten from the CBN Statistical Bulletin for the duration of 1991-2020. The statistical package used for the study is Econometric Views (E-Views 9.0). Multiple regression techniques via OLS, Augmented Dickey Fuller (ADF) test and Granger causality procedure was applied to determine causalities while Johansen Co-integration test was administered to verify sustainability of the long-run relationships. The result revealed that there exist short and long-run relationships between domestic private investment and key macroeconomic variables- Inflation, Lending rates, gross domestic savings, real gross domestic product, money supply in Nigeria. Vector error correction model was also adopted to determine the speed of adjustment between the independent variables and the dependent variables. The OLS result revealed that there exist a positive and significant relationship among GDSA, BMOS, RGDP and PDIV, negative and significant relationship among PLER, INFR, and PDIV. Therefore, the study recommends among others that Nigerian government must be resolute in their resolve to drive private domestic investment in the country by implementing appropriate monetary and fiscal policies that address inflation, interest rate, domestic savings and money supply. This will no doubt fast track inclusive growth.

Implementasi Teori Hukum Keadilan Bermartabat Dalam Hukum Investasi

Investment plays a crucial role in the economic development of a nation and the welfare of its people. Investment law governs the norms and regulations that encompass the possibilities, requirements, protections, and directions of investment to achieve such welfare. In the context of Indonesia, economic development and societal well-being are regulated by the Constitution, with the government having legislation that regulates both domestic and foreign investment. The theory of dignified justice, based on the values of Pancasila, serves as a fundamental principle in investment law, aiming for absolute justice, fair certainty, and utility as primary objectives. A case study on investment fraud in the mining sector illustrates the application of dignified justice theory in legal practice. This research aims to analyze the implementation of dignified justice theory in investment law in Indonesia, focusing on the principles of investment and case studies of investment fraud. The research method employed is juridical normative and literature review. The findings demonstrate that dignified justice serves as the main guideline in upholding the law and providing certainty for economic actors. Dignified justice reflects how the law addresses injustice, with the hope that existing regulations ensure fair certainty for all parties. Thus, investment law in Indonesia embraces the principle of dignified justice to bring about shared prosperity within society.

Global Warming in Interaction with Domestic and Foreign Investment: The Indian Case Study

Human actions have a substantial impact on the global environment. The depletion of the ozone layer due to the use of chlorofluorocarbons and the threat of global warming due to the accumulation of "greenhouse gases," carbon dioxide and methane that is released in agriculture, energy production, and transportation are few prominent illustrations of damages to the environment. The advent of these unprecedented repercussions of human activities on a global scale eventually directs to a complex economic policy in the world. Hence, the policies to promote economic growth, equity, trade, and technological change to have a significant impact on the global environmental scenario. Purpose: In this respect, the current study concentrates on the financial activities by a country, specifically, India, in relation to the global warming. The major financial activities in a country are based on domestic as well as foreign investment. The source of the domestic financial investment activities, known as Domestic Investment (DI), considered here are investment in plant, machinery, and equipment purchase. While the source of foreign investment is specified as Foreign Direct Investment (FDI). Methodology: The study applies Auto Regressive Distributed Lag (ARDL) model to find the co-integration between the three variables. Further, the long run impact of domestic investment and short run impact of FDI on carbon dioxide emission are found to be present. Finding: The study finds significant environmental impact of domestic and foreign investment in India. Implication: Further, the study provides important policy implication by suggesting reducing the usage of carbon emission through fossil fuel to improve long run sustainable development in India.

Analisis faktor-faktor penyerapan tenaga kerja di Karesidenan Pekalongan tahun 2017-2022

Pekalongan Residency faces significant economic challenges, especially in terms of low labor absorption. Economic growth, unemployment rate, minimum wage and investment are some of the factors that have the potential to influence it greatly. This study aims to estimate the effect of GRDP, district minimum wage, unemployment, and investment on labor absorption in the Pekalongan Residency in 2017–2022. The analysis technique used is panel data regression. The Chow and Hausman test analysis shows an optimal fixed effect model. The test results show that unemployment and district minimum wage affected labor absorption in the Pekalongan Residency in 2017-2022. Gross regional domestic product and investment did not affect labor absorption in the Pekalongan Residency in 2017-2022.

Evaluating the Effects of Public Debt on Sri Lanka’s Economic Growth: A Short-term and Long-term Perspective

Aims: The objective of this paper is to examine whether public debt enhances economic growth in Sri Lanka by separating debt into domestic and external debt. Study Design: The paper adopts the Keynesian demand-side model to estimate GDP on demand-side and supply-side factors such as domestic debt, external debt, gross fixed capital formation (investment in short), labour force, general price level, money supply, government spending and trade openness. In a model where debt causes investment, public debt effects are netted out from investment by removing the estimated investment effects of domestic and external debt. Duration of Study: quarterly data from Q1 2010 to Q1 2023 are utilized to trace the long-term and the short-term effects of domestic and external debt on GDP. Methodology: The ARDL method of estimation is used and the model is estimated in double log form so that estimated parameters reflect output elasticities. A general to specific modelling approach is adopted to find the best suited model. Results: Variables such as government spending, money supply, general price level and labour force are not relevant while domestic debt, external debt, investment (debt effects netted out) and trade openness are significant in describing GDP. The long-term domestic debt elasticity of GDP is 0.588 while short-term domestic debt elasticity (sum of contemporaneous and lag effects) is about 0.63. The cumulative effects of domestic debt on GDP tappers off to 0.60 in the long-run. The result suggests negative impacts (-0.272 and -0.254) of external debt on the economic growth in short-term and long-term respectively. The negative effect of external debt can be justified if recent external borrowings have been used to repay loans taken to finance war and unproductive projects. Conclusion: The paper finds that the domestic public debt creates relatively strong positive effects on GDP in the short-term and the long-term. Contrary to the expectations, the effects of external debt on GDP have become negative both in the short-term and the long-term. The paper also finds that debt effects on GDP have been significantly reduced when debt effect-ridden investment variable is included in the regression in place of debt-effect netted out investment. Thus, this study recommends researchers to carry out further research on why the effects of external debt on GDP become negative. Further, it recommends policy makers to use both domestic and external debt to finance public investment and productivity enhancement projects rather than borrowing merely for the purpose of consumption and repaying of existing debt.

The deposit insurer’s capacity assessment in the context of impact on the financial system stability

The paper is devoted to the development of a scientific and methodological approach to determining the indicators of the deposit insurer's ability to influence the financial system stability. The scale and complexity of the tasks of ensuring the immediate and gradual reconstruction of Ukraine, high dynamics and proper quality of economic growth, the functioning of the economy in the conditions of war and a constant external threat actualize the issue of increasing domestic investment potential and intensifying the transformation of household savings into investments. It creates challenges for the deposit insurance system. In the research structural and logical analysis, induction, comparison, and relative values were used. The capacity of a deposit insurer in the context of its impact on financial stability should be considered in the context of operational, resource and payment capacity, each of which can be assessed by an appropriate indicator. The operational capacity reflects the ability of the deposit insurer to influence the situation in the deposit market and perform the function of deposit guaranteeing. The normative value of the operational capacity indicator in Ukraine is proposed to be set at the level which, in the conditions of the dynamic banking sector of Ukraine and the deposit market as its component, will allow considering the slightest deviations of the indicator (μ+2σ). The resource capacity reflects the coverage level of guaranteed deposits by the insurer's financial resources. The normative value of the resource capacity indicator in Ukraine is proposed to be set at the level of 0.8%, which meets the requirements of Directive 2014/49/EU of the European Parliament and of the Council. The payment capacity reflects the sufficiency of the deposit insurer's financial resources to pay compensation to depositors in the future. The normative value of the payment capacity indicator in Ukraine, by analogy with the indicator of the ratio between insurance technical reserves and the average value of insurance payments, is proposed to be set at least 1 in annual terms and not less than 12 in monthly terms.

Perlindungan Penanaman Modal Asing dan Pengaruh Pertembuhuan Ekonomi Berdasarkan Neo-Classical Economy Theory

Foreign investment is a leading sector and provides many benefits for the welfare of society. Investment in the tourism sector, especially the hotel sector, is wide open to foreign investors, both full ventures and joint ventures. This research uses normative juridical legal research methods. Regulations regarding Foreign Investment (PMA) in Indonesia are currently in Law Number 25 of 2007 concerning Capital Investment (UUPM) with several amendments through Law Number 11 of 2007 of 2020 on Job Creation. At the time of its birth, the UUPM was considered a breakthrough which was born as a new law and included domestic investment legislation (PMDN). Safe investments require legal protection from the government so that they can be run with a better business plan. Government policies that support investors towards investment security will be a big attraction for investing in Indonesia. To attract investors who want to invest their capital, it is necessary to build a supportive environment, work opportunities and permits that can be mutually beneficial. It can be concluded that politics has a big influence on the entry of foreign investors

Pemodelan Produk Domestik Regional Bruto (PDRB) di Indonesia Periode 2018-2021 dengan Analisis Regresi Data Panel

High and sustainable economic growth is the main condition or a must for the continuity of economic development and increased welfare. GRDP is defined as the total added value generated by all business units in an area. The analytical method used in this study is panel data regression analysis. Panel data regression is used to observe the relationship between one dependent variable and one or more independent variables. This study aims to determine the panel regression model of Gross Regional Domestic Product (GDP) in Indonesia for the period 2018 to 2021 and to find out whether the domestic investment investment variable and the cooperative business volume variable affect GRDP in Indonesia for the 2018-2021 period. The results obtained in this study are that the best panel regression model for modeling GRDP is the FEM model and the variable Domestic Investment Investment and Cooperative Business Volume are variables that have a significant effect on the GRDP variable in Indonesia for the 2018-2021 period.

Analisis Investasi Dalam Negeri, Upah Minimum, dan Pengeluaran Pemerintah Terhadap Jumlah Penduduk Miskin di Provinsi Jawa Timur

The main goal in the global Sustainable Development Goals (SDGs) agreement is to end poverty. Appropriate and efficient government intervention is needed to reduce poverty. This research analyzes the influence of domestic investment, minimum wages and government spending in reducing poverty in East Java. Multiple linear regression analysis was used as parameter estimation for this research. The data used a time series period 2008-2022. The results show that there is a significant negative relationship between domestic investment and government spending on the poor people. This means that when domestic investment and government spending increase, it will reduce the poor people in East Java. However, this is different from the minimum wage which has a positive and significant relationship to the poor people. When the minimum wage increases, it has no effect on the number of poor people in East Java. So it can be concluded that the government can optimize domestic investment and government spending to end the problem of poverty in East Java.

The Russia-Ukraine conflict, soaring international energy prices, and implications for global economic policies

This study examines the economic impact of soaring international energy prices during the Russia-Ukraine conflict from February 23, 2022, to May 31, 2022. Notably, by applying a CGE model, this study offers insights into energy policies at both macroeconomic and industrial levels, emphasizing the model's utility in analyzing complex economic interactions under geopolitical stress. Findings indicate that: (1) Russia, a critical energy-producing country, faced severe economic setbacks due to sanctions, with its GDP contracting by 5.5 %, household income decreasing by 4 %, and consumer spending dropping by 3.5 %. This was accompanied by a significant reduction in domestic investment by 6 %, a decline in output by 5 %, and a decrease in societal welfare indicators. (2) Other energy-producing countries or regions, such as the Middle Eastern oil-producing countries, Australia, Canada, Mexico, and Southeast Asia, experienced economic benefits from the global energy market's “crowding-out effect.” These regions saw an increase in GDP ranging from 2 % to 4.5 %, output growth by 3 %–6 %, and household income and consumption improvements by approximately 3 %–5 %. However, these benefits were tempered by a 1 %–2.5 % decline in domestic investment due to rising local energy costs. (3) Developed and developing regions, suffered adverse impacts, including the US, UK, EU, Japan, China, South Asia, Middle Eastern non-oil-producing countries, and Africa. These regions reported a decrease in GDP by 0.5 %–3 %, a decline in household income by 2 %–4 %, and lower consumption rates by 1.5 %–3.5 %. The economic strain was further exacerbated by an inflation increase of up to 2 % across these economies. This research offers valuable insights for governments and policymakers globally to address the challenges posed by the Ukraine crisis-induced energy crisis, underscoring the need for strategic energy policy adjustments and economic resilience planning.

The effect of foreign direct investment on economic growth in Afghanistan: an empirical insight

PurposeThis paper examines the impact of foreign direct investment (FDI) on the economic growth of Afghanistan over the period 1990 to 2019.Design/methodology/approachThis study uses an autoregressive distributed lag (ARDL) to measure FDI’s impact on economic growth and determine the short- vs long-run relationship.FindingsThe results show that the F-bound cointegration test confirms the long-run relationship among the variables. The long-run and short-run results reveal that foreign direct investment has a significant negative impact on economic growth in the long run. However, domestic investment and labour force have a significant and positive impact on economic growth in the long run. Moreover, the impact of trade openness on economic growth is insignificant in the long run, while it has a significant negative impact in the short run.Originality/valueIn this study, we contribute to this research area by analysing the function of FDI in economic growth from Afghanistan’s experience and perspectives. This is the first study empirically examining this relationship in Afghanistan while considering other selected macroeconomic indicators. This paper could greatly benefit policymakers in Afghanistan by guiding the formulation of FDI policies that would spur its economic growth and development.

Why the Feldstein–Horioka “puzzle” remains unsolved

AbstractWe argue that the 40‐year‐old Feldstein–Horioka “puzzle” should have never been labeled as such. We discuss two problems with the literature. First, we show that the series of investment and saving rates typically used in empirical exercises to test the Feldstein–Horioka thesis are not appropriate. The correct series to properly test it are not collected. Second, we show that the Feldstein–Horioka regression is not a model in the econometric sense, that is, an equation with a proper error term (a random variable). The reason is that by adding the capital account to their regression, one gets the accounting identity that relates the capital account, domestic investment, and domestic saving. This implies that the estimate of the coefficient of the saving rate in the Feldstein–Horioka regression can be thought of as a biased estimate of the same coefficient in the accounting identity, where it has a value of 1. Because the omitted variable is known, we call it pseudo bias. Given that this (pseudo) bias is known to be negative and less than 1 in absolute terms, it should come as no surprise that the Feldstein–Horioka regression yields a coefficient between 0 and 1.

Outward Foreign Direct Investment and Corporate Environmental Investment: Competition or Cooperation?

China is currently in a crucial phase of establishing a new domestic and international “dual circulation”, and a new model of sustainable development. OFDI and environmental investment play significant roles in both external and internal economic cycles. In this study, we constructed a multi-period difference-in-differences (DID) model, using data from listed companies in China from 2008 to 2022, to analyze how OFDI impacts domestic environmental investment and its underlying mechanism. The findings demonstrated that OFDI can significantly reduce the environmental investment made by domestic enterprises. There exists a capital competition relationship between these two activities due to financing constraints, although OFDI can mitigate environmental issues by reducing pollution emissions and promoting industrial structure upgrading within the home country, resulting in savings on environmental investments. Heterogeneity analysis revealed that the negative impact of OFDI on environmental investment is primarily observed in non-state-owned enterprises, firms investing in developed countries, and those subject to strict environmental requirements imposed by host governments. This study explains the internal logic of China’s environmental investment reduction from the perspective of OFDI, deepens the study of the environmental consequences of OFDI, broadens the applicable boundaries of the theory of OFDI’s impact on environmental investment, and provides insights for the government to establish a high-level opening-up pattern and address the dilemma of environmental governance.

Analysis Of Factors Affecting Employment In Sidoarjo Regency

Problems that occur in Indonesia that until now have not been resolved are related to labor absorption. The large number of job seekers who are not proportional to the number of available jobs makes unemployment increase. This study aims to analyze the factors that affect labor absorption in Sidoarjo Regency using three independent variables, namely economic growth, domestic investment, and district minimum wage. This research uses quantitative research methods with time series data over 15 years, starting from 2007 to 2021. The method used is multiple linear regression. The analysis tools used use IBM SPSS Statistics 25. The results showed that economic growth, domestic investment, and the district minimum wage together (simultaneously) had a significant influence on employment in Sidoarjo Regency.