Jurnal Ilmu Ekonomi
Vol. 8 No. 03 (2024): Jurnal Ilmu Ekonomi

Macroeconomics, Domestic Credit and Institutional Quality on Foreign Direct Investment in ASEAN

Rafiuddin, Muhammad (Unknown)
Endraswati, Hikmah (Unknown)
Wibowo , Muhammad Ghafur (Unknown)



Article Info

Publish Date
16 Jul 2024

Abstract

Foreign Direct Investment (FDI) is one of the external capital flows that has many benefits for the host country in closing the savings and investment gap. The purpose of this study is to examine and explain the factors that affect the inflow of foreign capital to ASEAN countries from 2013-2022 through a fixed effect model approach. This study found that economic growth, open trade, and total domestic credit have a significant positive effect while institutional quality has a significant negative effect on FDI inflows in ASEAN countries. The findings of this study provide implications that can be taken into consideration for government agencies to make policies that are on the conditions of each country to attract investors to invest in ASEAN countries, especially in maintaining the country's economic growth rate, ease of access to global trade and finance followed by improvements in terms of bureaucratic reform of institutional quality.

Copyrights © 2024






Journal Info

Abbrev

jie

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Jurnal Ilmu Ekonomi, aims to bridge the gap between research and practice, providing information, ideas and opinion, in addition to critical examinations of advances in economic research. Through the coverage of policy and economic developments, the latest results of research into the assessment of ...