Analysis of the Foreign Trade and Gross Domestic Product Effect on Foreign Direct Investment using Panel Data Regression Estimation

Winda Putri Anggraini

Abstract


Investment is one of the components that determines a country's economic growth. Sources of investment funds can be seen through two approaches, domestic investment and foreign investment. One of the promising components of foreign investment is Foreign Direct Investment (FDI). FDI is considered more valuable for the country because it is more long-term in nature. This study aims to see the effect of Gross Domestic Product (GDP) and export-import as foreign trade activities on FDI, through estimation with panel data regression model. The data used is data from 20 countries with observation period from 2009 to 2018. With the Random Effect Model as the best model, which the estimators also qualify the BLUE estimator. it can be concluded that partially the GDP variable has no significant effect. Meanwhile, exports have a significant positive effect and imports have a significant negative effect on FDI.

Keywords


Foreign Direct Investment; Regresi Data Panel; Random Effect Model

Full Text:

PDF

References


Albahi, Muhammad. (2016). Export-Import and Foreign Direct Investment (FDI): Indonesian Economic Study. IOSR Journal of Economics and Finance, 7(4), 37-44.

Anwar, Cep Jandi. (2016). Faktor-Faktor Yang Mempengaruhi Foreign Direct Investment (FDI) Di Kawasan Asia Tenggara. Media Trend, 11(2), 175-194.

Dunning, J.H. (1993). The Globalization of Business. London: Rouledge.

Gujarati, D. (2003). Basic Econometrics Third & Fourth Edition. New York: McGraw-Hill.

Naseem et al. (2011). Impact of Foreign Direct Investment on Gross Domestic Product. Global Journal of Management and Business Research, 11(8), 35-40.

Prabhakar, Akhilesh Chandra. (2015). Foreign Direct Investment, Trade and Economic Growth: A New Paradigm of the BRICS. Modern Applied Science, 9(12), 32-42.

Purba, Putri S. (2015). Pengaruh Impor Dan Nilai Tukar Terhadap Investasi Langsung Asing Di Indonesia. Jurnal Administrasi Bisnis, 28(1), 43-49.

Salvatore, D. (2007). International Economics. New Jersey: Prentice-Hall.

Salvatore, D. (2014). Ekonomi Internasional. Jakarta: Salemba Empat.

Todaro, M.P dan Smith, S.C. (2003). Pembangunan Ekonomi di Dunia Ketiga Jilid I. Jakarta: Penerbit Erlangga.

Winardi. (1992). Kamus Ekonomi. Bandung: Mandar Maju.




DOI: https://doi.org/10.29303/emj.v4i1.85

Refbacks

  • There are currently no refbacks.


Copyright (c) 2021

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International LicensePreserved in LOCKSS, based at Stanford University Libraries, United Kingdom, through PKP Private LOCKSS Network program.


Indexed by:

      

e-ISSN : 2615-3270 || p-ISSN : 2615-3599