This study investigates the country-level economic determinants of foreign direct investments (FDIs) in Indonesia in the context of the ASEAN economy from 1990 to 2018 from the perspectives of gross fixed capital formation (GFCF) towards sectoral inward FDI. Using concepts from the OLI paradigm and the Gravity model, the panel data regression results reveal that besides for the host economy market size, other factors such as capital labor ratio, GDP per capita, and trade openness are some of the key factors that attract FDI. Furthermore, alternative models reveal good monetary management found in interest rates, and foreign exchange rates influence inward FDI into Indonesia. This research recommends policymakers to utilize growing gross fixed capital formation to attract FDI and stable economic growth.
Gustely, Jason P., "Foreign Direct Investment in ASEAN: The Economic and Locational Determinants of Foreign Direct Investment in the Context of Indonesia" (2020). Senior Independent Study Theses. Paper 8868.
International Economics | Macroeconomics
Foreign Direct Investment, FDI, International Economics, Indonesia, ASEAN
Bachelor of Arts
Senior Independent Study Thesis
© Copyright 2020 Jason P. Gustely