Jurnal Ekonomi
Vol. 13 No. 01 (2024): Jurnal Ekonomi, Edition January - March 2024

Analysis of the effect of foreign investment, domestic investment and inflation on economic growth in Indonesia 2000-2022

Salsharea Pradita (Unknown)
Daryono Soebagiyo (Unknown)



Article Info

Publish Date
31 Jan 2024

Abstract

This study analyzes the impact of Domestic Investment (PMDN), Inflation (INF), and Foreign Investment (FDI) on Indonesia's economic growth using the Error Correction Model (ECM). The results of the analysis show that PMDN has a significant effect on FDI in the short term, while INF has no significant effect. In the long run, INF has a significant impact on FDI, while PMDN does not play a significant role. The diagnosis test shows that the estimated model fits the ECM criteria, but the linearity test requires improvement. This study highlights the importance of creating a conducive environment and policy stability to attract foreign investment, and emphasizes the strategic role of FDI in economic development. The conclusions provide insights for policy makers to enhance foreign investment attraction and sustainable economic growth.  

Copyrights © 2024






Journal Info

Abbrev

Ekonomi

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Ekonomi [p. ISSN 2301-6280, e. ISSN 2721-9879] is a peer-reviewed journal published Half times a year (June, and December) by SEAN Institute. Jurnal Ekonomi is intended to be the journal for publishing articles reporting the results of economics research. Jurnal Ekonomi invites manuscripts ...