Foreign Investment Variables Research Articles

Natural Disasters and Sustainability Development Goals (SDGs) in Indonesia: Perspectives on Social and Economic Conditions

Objective: The purpose of this study is to prove the impact of natural disasters on economic and social conditions in regions in Indonesia. In addition, this study also wants to examine the moderating effect of domestic and foreign investment on the effect of natural disasters on economic and social conditions in Indonesia. This research is in line to support the achievement of SDG 3 and SDG 8. Theoritical Framewrok: This research uses basic theories related to human resource development theory and Harrod-Dommar economic growth theory. Methods: This study identifies the economic and social conditions of 34 provinces in Indonesia from 2017 to 2021 using Moderated Regression Analysis (MRA). Results and Discussion: The results show that the level of natural disasters has a positive effect on financial conditions but a negative effect on social conditions of 34 provinces in Indonesia from 2017 to 2021. The final finding is that the domestic investment variable can only strengthen the positive effect of natural disasters on financial conditions. Research Implications: The findings of this study indicate that the government in Indonesia conducts disaster management and makes a well-structured financial budget for disaster management in Indonesia so as to reduce the negative impact of natural disasters that occur. Originality/Value: This study explores the impact of natural disasters on social and economic conditions in Indonesia, which is still rarely done by previous studies and the presence of domestic investment and foreign investment variables as moderating variables adds to the novelty of this study.

Analisis Pengaruh Investasi Penanaman Modal Asing (PMA), Penanaman Modal Dalam Negeri (PMDN), Belanja Modal, dan Tenaga Kerja Terhadap Produk Domestik Regional Bruto di Kabupaten/Kota Provinsi NTB Tahun 2018-2022

This study aims to analyze the effect of foreign investment, domestic investment, local government capital expenditure, and labor on district/city GRDP in NTB Province in 2018-2022, and This study will also analyze which variables have the highest effect on the GRDP value. This study is a study that uses quantitative descriptive methods using data panel data analysis tools using EViews software 10. The results of this study indicate that foreign investment variables and domestic investment variables partially have a positive and significant effect on the GRDP variable, while the capital expenditure variable and labor variables have a positive but not significant influence. As for simultaneously the independent variables of foreign investment, domestic investment, capital expenditure, and labor simultaneously have a significant effect and for the highest variables on GRDP is a foreign investment variables.

Moderating the Role of Trade Openness on Foreign Portfolio Investment and Economic Growth among East Africa Community Countries

Purpose: This study investigates the impact of foreign portfolio investment (FPI) on economic growth in East Africa using panel data for Kenya, Uganda, Tanzania, Rwanda, and Burundi from 1974-2022. Methodology: The analysis employs a panel vector error correction model to estimate the short and long-run effects of FPI on growth. The study relied on secondary data sources for the period 1974-2022 with an annual frequency, implying 49 years of data. Data on foreign investment variables and macroeconomic control variables were sourced from the World Bank database, National Statistical Bureaus, Central Banks, and Stock Exchanges of the respective countries. Findings: The results indicate that FPI significantly positively impacts economic growth in East Africa. A 1% increase in FPI inflows as a share of Gross Domestic Product (GDP) boosts annual real GDP growth by approximately 10.7% in the long run. The findings are robust to the inclusion of moderating variables like trade openness. Unique Contribution to Theory, Practice and Policy: The empirical analysis aimed to validate the Modern Portfolio Theory by examining if greater foreign portfolio investment flows contributed positively to economic growth in the East African region. The results lend support to policy efforts in East Africa to attract greater FPI through capital market reforms, regional integration, and macroeconomic stability. However, further developing financial markets and enhancing absorptive capacity is essential to leverage FPI more effectively for sustainable growth financing.

Foreign Investment Flows and Stock Market Performance in Nigeria

This study looks at how foreign investment flows affected Nigeria’s stock market performance from 1994 to 2023. The paper utilised an ex-post facto research approach, and the Central Bank of Nigeria (CBN) bulletin, 2023, offered the data for analysis. Market capitalisation (MCAP) was the dependent variable in the study, and the independent variables used to measure foreign investment flows were foreign direct investment inflows (FDINF), outflows (FDIOUF), inflows from foreign portfolio investments (FPINF), and outflows from foreign portfolio investments (FPIOUT). The study tested the proposed hypotheses using the Ordinary Least Squares estimation approach. In order to determine the dependent variable, market capitalisation, the research examined the effects of four independent variables: FPI inflow, FDI inflows, and FPI outflows. The results show that the influx of FDI has little effect on market capitalisation. Outflows of FDI have a big effect on market capitalisation. Inflows of foreign portfolio investments have little effect on market capitalisation. Outflows from foreign portfolio investments dramatically increase the capitalisation of the stock market. As per the r2, changes in foreign investment variables in Nigeria may account for around 59% of the variations in stock market performance within the Nigerian economy. According to the study’s findings, foreign investment flows significantly affect Nigeria’s market capitalisation. Suggestions include promoting foreign direct investment inflows continuously, encouraging domestic companies to invest overseas, improving market transparency to draw in foreign portfolio investment inflows, and cautiously promoting outward investments to avoid excessive capital outflows.

The Effect of Foreign Investment, Population, Inflation and Wages on Educated Unemployment in Surakarta in 2016-2022

The problem in the economy that often occurs is unemployment. Unemployment cases are a problem that occurs a lot and is difficult to overcome. For this reason, this study was conducted with the aim of understanding well what factors cause the occurrence of educated unemployment in Surakarta City. For this reason, this study uses several factors that will be tested such as the influence of foreign investment, the number of residents, the amount of inflation and the difference in the minimum wage of the city of Surakarta. All data is based on information published from 2016-2022. The method used in this study is quantitative through time series data for 7 years. The source of data from this study is BPS (Central Statistics Agency) as well as various other sources that support. Then the analysis was carried out using the Ordinary Least Square (OLS) method. All tests are done with number processing and spss analysis applications. In accordance with the analysis actions carried out on all the data obtained, it can be explained some information on the findings of foreign investment variables that have a negative and significant effect on educated unemployment, population has a positive and significant effect on educated unemployment, inflation has a positive and insignificant effect on educated unemployment, wages have a positive and significant effect on educated unemployment in Surakarta City. For this reason, in general, all variables carried out in the study have a real influence as much as 96% on educated unemployment in Surakarta City.

ANALISIS PERTUMBUHAN EKONOMI INDONESIA TAHUN 1994-2020

This study aims to find out the factors that affect Indonesia's economic growth. To achieve the objectives of the study, this study used independent variables in the form of foreign investment (FDI), exchange rates, and interest rates. The data used in this research is secondary data from 1994-2020 sourced from various reports and compilations, especially publications from the Central Statistics Agency (BPS) and Bank Indonesia. The model used in this study was multiple linear regression with the method of analysis of the smallest square approach (Ordinary Least Square). The calculation results show that foreign investment variables, and exchange rates have a positive and significant effect on economic growth, while interest rates have a negative and significant effect on economic growth. The coefficient of determination (Adj.R2= 0.806) indicates that Indonesia's economic growth of 80.6 percent is influenced by foreign investment (FDI), exchange rates, and interest rates, while the remaining 19.4 percent is influenced by other factors outside this research. To increase the rate of economic growth, the government needs to increase the amount of FDI in Indonesia and maintain the stability of the rupiah exchange rate against the US dollar, thereinafter lowering the interest rate in order to increase domestic investment, in order to create an optimal national total production. Keywords : Economic Growth, Foreign Investment (PMA), Exchange Rate, and Interest Rate

Economic Environment Effect: Foreign Investment Variables, Exports and Dollar Exchange Rates

The increase of foreign debt can be affected by inter-state trade in which there are foreign investment, exports, and imports. The value of foreign investment, exports, and imports of a country is affected by the dollar exchange rate. This study aims to test empirically the influence of foreign investment, exports and imports of foreign debt with the dollar exchange rate as an intervening variable. The data used in this study are secondary data which is available at Bank of Indonesia (BI), The Ministry of Finance, UNCTAD FDI / TNC database and BPS data from 1986 to 2017. The data analysis technique used is path analysis. Based on the results of the analysis, foreign investment variables, exports and dollar exchange rates do not directly affect foreign debt, but imports directly affect foreign debt. Dollar exchange rate as an intervening variable for export and import variables has an indirect influence on foreign debt in Indonesia in from 1986 to 2017, while foreign investment variable on foreign debt of dollar rate does not become an intervening variable.

THE ROLE OF INVESTMENT TO THE INDONESIAN ECONOMIC GROWTH

As one of the developing countries, Indonesia needs to increase its economic growth in order to improve the country prosperity as well as to overcome poverty, unemployment, and inequality of income distribution matters. Additionally, Indonesia also needs to obtain both national and international economic competitiveness, specifically in facing Asean Economic Community. The aim of the research is to identify the role of investment to the Indonesian Economic Growth. The data used is the secondary data taken from The Central Bureau of Statistics and Indonesia Investment Coordinating Board. The data analysis technique used is Error Correction Model which is useful to examine the long-term correlation amongst economic variables and to capture the economic phenomena as well.The result of the research indicates that the domestic investment and foreign investment variables have a long-term relation with the economic growth. In a short-term, the domestic investment and foreign investment variables also show significant influences. There are positive and significant influences of the domestic investment to the economic growth. This research is expected to become a recommendation and information to the government and policy makers.

Foreign Direct Investment, Trade, and Economic Growth: An Empirical Analysis of Bangladesh

The study reveals that there is a relationship between foreign direct investments, trade, and growth rate of per capita GDP for Bangladesh with the help of annual time series data for 1973 to 2014. The Vector Error Correction Model (VECM) analysis shows that there is a long-term relationship between these variables. To check the validity of the VECM model, we did a few post-estimation diagnostic tests, and found that the residuals of the regressions have a normal distribution and do not show any auto-correlation. The trade and foreign investment variables have a significant impact on the growth rate of GDP per capita. Because FDI and trade are two important components of economic growth in Bangladesh, it is important to frame policies that promote growth and reduce the barriers for capital flows.