Determinan Aliran Masuk Foreign Direct Investment ke Negara-Negara Berpendapatan Rendah

  • rully aprianto IPB
  • Alla Asmara IPB University
  • Sahara IPB University

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.

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Author Biographies

Alla Asmara, IPB University

Lecture Of Departement Economics

Faculty Of Economics and Management

Sahara, IPB University

Ketua Departemen Ekonomi

Fakultas Ekonomi dan Manajemen

IPB University

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Published
2020-02-28
How to Cite
aprianto, rully, Alla Asmara, & Sahara. (2020). 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.v7i2.29398