<![CDATA[This study investigates the comparative influence of Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI) on the Open Unemployment Rate (OUR) in Bandung Regency. This study utilizes annual time-series data covering the period from 2007 to 2024 for the OUR variable, as well as deflated FDI and DDI realization values. The methodology adopted is a quantitative approach with an Ordinary Least Squares (OLS) regression model specified in a log-log form to analyze the elasticity relationship between variables. The model estimation results show that DDI has a negative and statistically significant effect on the OUR, with an elasticity coefficient of -0.285, implying that a 1% increase in real DDI will decrease the OUR by 0.285%. Conversely, FDI was found to have no statistically significant effect on the OUR at a 5% significance level. The main finding of this research is the clear difference in effectiveness between the two capital sources in local labor absorption. DDI proves to be a strong determinant in reducing unemployment, whereas FDI, despite its volume, shows no significant statistical impact. This finding highlights that domestic investment plays a more crucial and direct role in addressing unemployment issues at the regency level, such as in Bandung Regency. Keywords: Foreign Direct Investment, Domestic Direct Investment, Open Unemployment Rate, OLS Regression]]>
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