Determinan Aliran Masuk Foreign Direct Investment ke Negara-Negara Berpendapatan Rendah
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Accepted
11 February 2020
Published
1 December 2018
Abstract
Capital is an important factor that drives economic growth and development. Foreign direct investment (FDI) is one of the best forms of capital in the financing and investment of industrial projects. Therefore, it is important to identify the factors that influence FDI and determine the influence of each factor to make the appropriate policy in this field. This study analyzes the determinants of FDI in low income countries. The analysis is based on a sample of 10 low-income countries. Using panel data model, three approaches are used, namely common effects, random effects, and fixed effects models, to identify factors affecting FDI in these countries. The results show the factors that significantly influence FDI inflows to low income countries are GDP (market size), inflation, labor productivity, infrastructure, trade openness, and political stability. Meanwhile, the quality of policies and regulations has no significant effect.
References
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Akpan U, Isihak S, Asongu S. 2014. Determinants of Foreign Direct Investment in Fast-Growing Economies: A Study of BRICS and MINT. African Governance and Development Institute AGDI Working Paper WP/14/002.
Amin M. 2011. Faktor-faktor yang Memengaruhi Penanaman Modal Asing Langsung di Sektor Industri Manufaktur Non Migas di Indonesia [tesis]. Bogor (ID): Institut Pertanian Bogor.
Cheng LK, Kwan YK. 2000. What are the Determinants of Location of Foreign Direct Investment? The Chinese Experience. Journal of International Economics, Volume 51, pp. 379-400.
Coconoiu DD. 2014. Determinant Factors of FDI in Developed and Developing Countries in the EU. SEA – Pract Appl of Sci. 2(3):231-250.
Dehshiri HM, Sameti MA, Sameti, MB. 2012. Impact of Human Development Index and Rule of Law to Attract Foreign Direct Investment in Selected Developing Countries. MPRA Paper No. 81479.
Dunning JH. 1977. Trade Location and Economic Activity and the MNE: A Search for an Eclectic Approach. The International Allocation of Economic Activity. London (GBR): Macmillan.
Fanbasten N, Escobar AG. 2016. Determinants of Foreign Direct Investment: A panel data analysis of the MINT countries [tesis]. Uppsala (SE): Uppsala University.
Feenstra RC, Inklaar R, Timmer MP. 2015. The Next Generation of the Penn World Table. American Econ Rev. 105(10):3150-3182.
Firdaus M. 2012. Aplikasi Ekonometrika untuk Data Panel dan Time Series. Bogor (ID): PT Penerbit IPB Press.
Florence OO, David KK, Daniel OI. 2016. Determinants of Foreign Direct Investment and Its Causal Effect on Economic Growth in Nigeria. KJBM. 8 (1):39-58.
Ghurra D, Goodwin B. 2000. Determinants of Private Investment: A Cross Regional Empirical Investigation. Appl Economics. 32:1819-1829.
Gujarati DN. 2006. Basic Econometrics 4th Ed. New York (US): McGraw-Hill/Irwin.
Hady H. 2004. Ekonomi Internasional Teori dan Kebijakan Keuangan Internasional Buku 2 Edisi Revisi. Jakarta: Ghalia Indonesia.
Hornberger K, Battat J, Kusek P. 2011. Attracting FDI: How Much Does Investment Climate Matter? World Bank Group, Note Number 327.
Khachoo AQ, Khan MI. 2012.“Determinants of FDI inflows to developing countries: a panel data analysis, MPRA Munich Personal RePEc Archive, MPRA Paper No. 37278.
Kurniati Y, Prasmuko A, Yanfitri. 2007. Determinan FDI (Faktor-faktor yang Menentukan Investasi Asing Langsung). Bank Indonesia: Working Paper No. 6.
Lall S. 2000. FDI and Development: Policy and Research Issues in the Emerging Context. QEH Working Paper Number 43.
Lestari A, Setyawan Y. 2017. Analisis Regresi Data Panel Untuk Mengetahui Faktor yang Memengaruhi Belanja Daerah di Provinsi Jawa Tengah. J Stat Industri dan Komp. 2(1):1-11.
Loots E. 2000. Foreign Direct Investment Flows to African Countries: Trends, Determinants & Future Prospects. Rand African Univ. 13:1-14.
Lucas REB. 1993. On the Determinants of Direct Foreign Investment: Evidence from East and South Asia. World Dev. 21(3):391-406.
Mallampally P, Sauvant KP. 1999.“Foreign Direct Investments in Developing Countries”. Finance and Development: A Quarterly Magazine of IMF.
Markusen JR, Venables AJ. 1997. Foreign Direct Investment as A Catalyst for Industrial Development. NBER Working Paper 6241.
de Mello LR. 1999. Foreign Direct Investment Led Growth: Evidence from Time Series and Panel Data. Oxford Economic Papers. 51:133-151.
Moran T, Gorg H, Seric A, Boden CK. 2018. Attracting FDI in Middle-Skilled Supply Chains. Economics E-Journal, Discussion Paper Vol. 12.
Mottaleb KA, Kalirajan K. (2010). Determinants of Foreign Direct Investment in Developing Countries: A Comparative Analysis. J Appl. Econ. Res 4: 369
Nachrowi ND, Usman H. (2006). Pendekatan Populer dan Praktis Ekonometrika untuk Analisis Ekonomi dan Keuangan. Jakarta: Lembaga Penerbit FEUI.
Perdana P, Santosa PB. 2012. Efektivitas Lembaga Birokrasi dan Tingkat Korupsi terhadap Investasi pada Enam Negara ASEAN tahun 2004 – 2010. Diponegoro J Econ. 1(1):1-11.
Ranjan V, Agrawal G. 2011. “FDI Inflow Determinants in BRIC Countries: A Panel Data Analysis”, Intl Bus Res. 4(4):255-263.
Roger S. 1998. Core Inflation: Concepts, Uses, and Measurement. Reserve Bank of New Zealand Discussion Paper Series No. G98/9.
Root F, Ahmed A. 1979. Empirical Determinants of Manufacturing Direct Foreign Investment in Developing Countries. Econ Dev and Cultural Change. 27:751-767.
Rugman AR, Verbeke A. 2008. Internalization Theory and Its Impact on the Field of International Business. Research in Global Strategic Management. 14. 10.1016/S1064-4857(08)00003-X.
Schneider F, Frey BS. 1985. Economic and Political Determinants of Foreign Direct Investment. World Dev. 13(2):161-165.
Vijayakumar N, Sridharan P, Rao KC. 2010. Determinants of FDI in BRICS Countries: A panel analysis. Int’l J Bus Sci and Appl Mgt. 5(3):1-13.
Wadhwa K, Sudhakara RS. 2011. Foreign Direct Investment into Developing Asian Countries: The Role of Market Seeking, Resource Seeking, and Efficiency Seeking Factors, Intl J of Bus and Mgt. 6(11):219-226.
Yasmin B, Hussain A, Chaudhary MA. 2003. Analysis of Factors Affecting Foreign Direct Investment in Developing Countries. Pakistan Econ and Soc Rev. 41(1 & 2):59-75.
Zhang KH. 2006. Foreign Direct Investment and Economic Growth in China: A Panel Data Study for 1992 – 2004. WTO, China and Asian Economies Conference.
Akpan U, Isihak S, Asongu S. 2014. Determinants of Foreign Direct Investment in Fast-Growing Economies: A Study of BRICS and MINT. African Governance and Development Institute AGDI Working Paper WP/14/002.
Amin M. 2011. Faktor-faktor yang Memengaruhi Penanaman Modal Asing Langsung di Sektor Industri Manufaktur Non Migas di Indonesia [tesis]. Bogor (ID): Institut Pertanian Bogor.
Cheng LK, Kwan YK. 2000. What are the Determinants of Location of Foreign Direct Investment? The Chinese Experience. Journal of International Economics, Volume 51, pp. 379-400.
Coconoiu DD. 2014. Determinant Factors of FDI in Developed and Developing Countries in the EU. SEA – Pract Appl of Sci. 2(3):231-250.
Dehshiri HM, Sameti MA, Sameti, MB. 2012. Impact of Human Development Index and Rule of Law to Attract Foreign Direct Investment in Selected Developing Countries. MPRA Paper No. 81479.
Dunning JH. 1977. Trade Location and Economic Activity and the MNE: A Search for an Eclectic Approach. The International Allocation of Economic Activity. London (GBR): Macmillan.
Fanbasten N, Escobar AG. 2016. Determinants of Foreign Direct Investment: A panel data analysis of the MINT countries [tesis]. Uppsala (SE): Uppsala University.
Feenstra RC, Inklaar R, Timmer MP. 2015. The Next Generation of the Penn World Table. American Econ Rev. 105(10):3150-3182.
Firdaus M. 2012. Aplikasi Ekonometrika untuk Data Panel dan Time Series. Bogor (ID): PT Penerbit IPB Press.
Florence OO, David KK, Daniel OI. 2016. Determinants of Foreign Direct Investment and Its Causal Effect on Economic Growth in Nigeria. KJBM. 8 (1):39-58.
Ghurra D, Goodwin B. 2000. Determinants of Private Investment: A Cross Regional Empirical Investigation. Appl Economics. 32:1819-1829.
Gujarati DN. 2006. Basic Econometrics 4th Ed. New York (US): McGraw-Hill/Irwin.
Hady H. 2004. Ekonomi Internasional Teori dan Kebijakan Keuangan Internasional Buku 2 Edisi Revisi. Jakarta: Ghalia Indonesia.
Hornberger K, Battat J, Kusek P. 2011. Attracting FDI: How Much Does Investment Climate Matter? World Bank Group, Note Number 327.
Khachoo AQ, Khan MI. 2012.“Determinants of FDI inflows to developing countries: a panel data analysis, MPRA Munich Personal RePEc Archive, MPRA Paper No. 37278.
Kurniati Y, Prasmuko A, Yanfitri. 2007. Determinan FDI (Faktor-faktor yang Menentukan Investasi Asing Langsung). Bank Indonesia: Working Paper No. 6.
Lall S. 2000. FDI and Development: Policy and Research Issues in the Emerging Context. QEH Working Paper Number 43.
Lestari A, Setyawan Y. 2017. Analisis Regresi Data Panel Untuk Mengetahui Faktor yang Memengaruhi Belanja Daerah di Provinsi Jawa Tengah. J Stat Industri dan Komp. 2(1):1-11.
Loots E. 2000. Foreign Direct Investment Flows to African Countries: Trends, Determinants & Future Prospects. Rand African Univ. 13:1-14.
Lucas REB. 1993. On the Determinants of Direct Foreign Investment: Evidence from East and South Asia. World Dev. 21(3):391-406.
Mallampally P, Sauvant KP. 1999.“Foreign Direct Investments in Developing Countries”. Finance and Development: A Quarterly Magazine of IMF.
Markusen JR, Venables AJ. 1997. Foreign Direct Investment as A Catalyst for Industrial Development. NBER Working Paper 6241.
de Mello LR. 1999. Foreign Direct Investment Led Growth: Evidence from Time Series and Panel Data. Oxford Economic Papers. 51:133-151.
Moran T, Gorg H, Seric A, Boden CK. 2018. Attracting FDI in Middle-Skilled Supply Chains. Economics E-Journal, Discussion Paper Vol. 12.
Mottaleb KA, Kalirajan K. (2010). Determinants of Foreign Direct Investment in Developing Countries: A Comparative Analysis. J Appl. Econ. Res 4: 369
Nachrowi ND, Usman H. (2006). Pendekatan Populer dan Praktis Ekonometrika untuk Analisis Ekonomi dan Keuangan. Jakarta: Lembaga Penerbit FEUI.
Perdana P, Santosa PB. 2012. Efektivitas Lembaga Birokrasi dan Tingkat Korupsi terhadap Investasi pada Enam Negara ASEAN tahun 2004 – 2010. Diponegoro J Econ. 1(1):1-11.
Ranjan V, Agrawal G. 2011. “FDI Inflow Determinants in BRIC Countries: A Panel Data Analysis”, Intl Bus Res. 4(4):255-263.
Roger S. 1998. Core Inflation: Concepts, Uses, and Measurement. Reserve Bank of New Zealand Discussion Paper Series No. G98/9.
Root F, Ahmed A. 1979. Empirical Determinants of Manufacturing Direct Foreign Investment in Developing Countries. Econ Dev and Cultural Change. 27:751-767.
Rugman AR, Verbeke A. 2008. Internalization Theory and Its Impact on the Field of International Business. Research in Global Strategic Management. 14. 10.1016/S1064-4857(08)00003-X.
Schneider F, Frey BS. 1985. Economic and Political Determinants of Foreign Direct Investment. World Dev. 13(2):161-165.
Vijayakumar N, Sridharan P, Rao KC. 2010. Determinants of FDI in BRICS Countries: A panel analysis. Int’l J Bus Sci and Appl Mgt. 5(3):1-13.
Wadhwa K, Sudhakara RS. 2011. Foreign Direct Investment into Developing Asian Countries: The Role of Market Seeking, Resource Seeking, and Efficiency Seeking Factors, Intl J of Bus and Mgt. 6(11):219-226.
Yasmin B, Hussain A, Chaudhary MA. 2003. Analysis of Factors Affecting Foreign Direct Investment in Developing Countries. Pakistan Econ and Soc Rev. 41(1 & 2):59-75.
Zhang KH. 2006. Foreign Direct Investment and Economic Growth in China: A Panel Data Study for 1992 – 2004. WTO, China and Asian Economies Conference.
Authors
ApriantoR., Alla Asmara, & Sahara. (2018). Determinan Aliran Masuk Foreign Direct Investment ke Negara-Negara Berpendapatan Rendah. JURNAL EKONOMI DAN KEBIJAKAN PEMBANGUNAN, 7(2), 174-188. https://doi.org/10.29244/jekp.7.2.2018.174-188
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