Manuscript Number : SHISRRJ20319

Factors Affecting Foreign Direct Investment In 10 Asean Countries 2015-2018 With Fixed Effect Model Approach on Panel Data Regression

Authors(3) :-Mohamad Ramdan, Agus Purwanto, Mirza Prameswari Saifuddin

ASEAN has a strategic location, abundant natural resources, high quality human resources, and economic growth that is resistant to crisis so that it can compete and become an attractive region as an investment destination. According to a UNCTAD survey of transnational companies in 2013-2015, ASEAN countries are classified as the priority country for the host country for FDI (Foreign Direct Investment). FDI can create broad employment opportunities, bring money and tools, which are able to have a good impact on accelerating the country's economic development. So that foreign direct investment (FDI) needs to be a common priority to be able to advance the economies of ASEAN member countries. Therefore, researchers want to find out what factors influence FDI from 9 independent variables consisting of the percentage of economic growth, population growth, percentage of inflation, interest rates, money supply (M2), HDI, access to internet services, and GDP in the sector industry and services in 10 ASEAN countries in 2015-2018. By using panel data regression method, this method is able to analyze multiple objects or (cross-sectional units) from an observation in several consecutive time periods or units of time. As for the results using the fixed effect model, a significant variable influences FDI, namely internet service access and HDI, where for every 1% increase in FDI, internet service access will increase by 0.0681%, and HDI will increase by 0.0412%.

Authors and Affiliations

Mohamad Ramdan
Faculty of Economy and Business, Pelita Harapan University, Tangerang, Indonesia
Agus Purwanto
Faculty of Economy and Business, Pelita Harapan University, Tangerang, Indonesia
Mirza Prameswari Saifuddin

Foreign Direct Investment, ASEAN Economy, Fixed Effect Model, Panel Data

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Publication Details

Published in : Volume 3 | Issue 1 | January-February 2020
Date of Publication : 2020-02-06
License:  This work is licensed under a Creative Commons Attribution 4.0 International License.
Page(s) : 30-41
Manuscript Number : SHISRRJ20319
Publisher : Shauryam Research Institute

ISSN : 2581-6306

Cite This Article :

Mohamad Ramdan, Agus Purwanto, Mirza Prameswari Saifuddin, "Factors Affecting Foreign Direct Investment In 10 Asean Countries 2015-2018 With Fixed Effect Model Approach on Panel Data Regression", Shodhshauryam, International Scientific Refereed Research Journal (SHISRRJ), ISSN : 2581-6306, Volume 3, Issue 1, pp.30-41, January-February.2020
URL : https://shisrrj.com/SHISRRJ20319

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