SHS Web Conf.
Volume 76, 2020The 1st International Conference on Social Sciences and Humanities (ICSH 2019)
|Number of page(s)||10|
|Published online||29 April 2020|
Determinants of Foreign Direct Investment in Indonesia “Evidence from Co-Integration and Error Correction Modeling”
Faculty of Business and Economics, Petra Christian University. Jl. Siwalankerto 121–131, Surabaya 60236, Indonesia
2 Chung Yuan Christian University, No. 200, Zhongbei Road, Zhongli District, Taoyuan City, Taiwan 320
* Corresponding author: firstname.lastname@example.org
This study aims to examine the influence of macroeconomic indicators and infrastructure spending on foreign direct investment (FDI) in the period 1981 to 2018. This study uses a quantitative approach. The sample in this study is macroeconomic variables, which include gross domestic product, inflation, debt to GDP ratio, interest rates, exchange rates, and infrastructure spending in the 1981 to 2018 period. The analysis technique used is cointegration and error correction modeling. The analysis shows that gross domestic product, inflation, debt to GDP ratio, interest rates, exchange rates, and infrastructure spending have a long-term and short-term relationship to FDI.
Key words: Gross domestic product / infrastructure spending / inflation / interest rates macroeconomics
© The Authors, published by EDP Sciences, 2020
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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