Enrichment : Journal of Management
Vol. 13 No. 1 (2023): April: Management Science And Field

Effect of Foreign Direct Investment (FDI) on economic growth and labor absorption in Maluku

Fahrudin Ramly (Universitas Pattimura, Indonesia)
D. Rumerung (Universitas Pattimura, Indonesia)
Rukmuin Wilda Payapo (Universitas Pattimura, Indonesia)



Article Info

Publish Date
21 Apr 2023

Abstract

This study aims to determine the effect of foreign direct investment (FDI) on economic growth and employment. Method, for this purpose, secondary data was collected in the form of annual data from the Central Bureau of Statistics and the Investment and One-Stop Integrated Service (PTSP) Office of Maluku Province. The data were analyzed using simple linear regression. The analysis model used adopts the Cobb Douglas function, namely Q = f (A Kα Lβ) with the assumption that Q is economic growth, K is capital and L is labor and A is technological progress. In the case of this study, it is assumed that economic growth is a function of capital, namely foreign investment (FDI) so that by modifying the Cobb-Douglas production function. The results showed that foreign investment (FDI) has a positive and significant effect on economic growth and employment. The effect of foreign investment (FDI) has a positive and significant effect on economic growth in Maluku Province. Policies that make it difficult for investors need to be reduced. Investment also has an influence on employment. Realized investment can expand production capacity and that will require additional labor.

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Journal Info

Abbrev

enrichment

Publisher

Subject

Economics, Econometrics & Finance

Description

The Enrichment : Journal of Management offers wide ranging and widespread analysis of all surfaces of management and science. Published two times per year, it delivers a emphasis for universal proficiency in the vital methods, techniques and areas of research; presents a opportunity for its readers ...