Economics Development Analysis Journal
Vol 10 No 3 (2021): Economics Development Analysis Journal

The Effect of Macroeconomy Variables on the FDI Inflow in ASEAN 5

Ajija, Shochrul Rohmatul (Unknown)
Fanani, Fery Farhan (Unknown)



Article Info

Publish Date
11 Aug 2021

Abstract

This study examines and analyzes the factors that influence Foreign Direct Investment (FDI) Inflow in ASEAN 5 (Indonesia, Singapura, Malaysia, Filipina, Dan Thailand). The difference between this study and previous research is in the area and a slight change in the variables. Interest rate, exchange rate, and export are used as independent variables. Meanwhile, the dependent variable is FDI (Foreign Direct Investment). This study was tested using the REM (Random Effect Model) method as the best method than PLS (Pooled Least Square) and FEM (Fixed Effect Model) method after through Chow and Hausman test. The method used in this study refers to the reference literature. The results show that interest rate, exchange rate, and export significantly affect FDI inflow in ASEAN 5. This study provides suggestions for policymakers to control price level/ inflation to maintain society's purchasing power and have trade cooperation with several countries to improve national productivity and export.

Copyrights © 2021






Journal Info

Abbrev

edaj

Publisher

Subject

Economics, Econometrics & Finance

Description

The journal scope is related to the research in developing countries such as development studies, poverty adequate, inequality, unemployment studies, behavioral economics, human development problems and many other issues. Economics Development Analysis Journal also publishes an articles related to ...