2024-03-29T15:14:56Z
https://nagoya.repo.nii.ac.jp/oai
oai:nagoya.repo.nii.ac.jp:02002201
2023-01-16T04:53:50Z
608:609:610:1630044879040
What Drives Foreign Direct Investment Inflow in Indonesia? An Exploration of Province and Sectoral Data
FAZAALLOH, Al Muizzuddin
open access
Foreign Direct Investment
Province
Sectoral
Indonesia
This study investigates the determinants of FDI inflow in the aggregate and sectors in 33 provinces in Indonesia during the 2010-2018 period. Based on Panel Corrected Standard Errors (PCSE) estimator, this study shows that each sector has specific determinants. Furthermore, we found that seven determinant factors are indispensable in attracting FDI in aggregate in Indonesian provinces: cumulative FDI aggregate, agglomeration neighboring province (GAD), domestic investment, urbanization, human capital (lower secondary school), bank lending, and foreign trade. In addition, we found that human capital (lower secondary school) and unit labor cost are essential variables in luring FDI in the agricultural sector. Whereas for the manufacturing sector, the leading factors in attracting foreign firms are GAD, foreign trade, and industrial estates. Finally, the critical factors for attracting foreign enterprises in the hotel and restaurant sectors are urbanization, human capital (upper secondary school), and GDP per capita.
名古屋大学大学院国際開発研究科
Graduate School of International Development, Nagoya University
2022-03
eng
departmental bulletin paper
VoR
https://doi.org/10.18999/forids.52.6
http://hdl.handle.net/2237/0002002201
https://nagoya.repo.nii.ac.jp/records/2002201
10.18999/forids.52.6
1341-3732
2189-9126
国際開発研究フォーラム
Forum of International Development Studies
52
6
1
19
https://nagoya.repo.nii.ac.jp/record/2002201/files/52-6.pdf
application/pdf
294 KB
2022-03-11