Jurnal Ilmu Ekonomi
Vol. 9 No. 04 (2025): Jurnal Ilmu Ekonomi

Determinants of Foreign Direct Investment in Indonesia Using Autoregressive Distributed Lag Modeling

Wulandari, Mutia Indah (Unknown)
Anam, Moh Saiful (Unknown)
Hadi Wijoyo, Handoko Sosro (Unknown)



Article Info

Publish Date
24 Nov 2025

Abstract

This study aims to analyse the influence of trade openness, institutional quality, and the exchange rate on Foreign Direct Investment (FDI) in Indonesia. The approach used is an ARDL regression analysis of time-series data from 2003 to 2023. The study's findings reveal that, in the short term, only trade openness has a significant positive effect on FDI. In contrast, in the long term, none of the other variables is substantial. These results highlight the importance of strengthening institutional improvements and maintaining trade policy stability to increase FDI attraction over the longer term.

Copyrights © 2025






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 ...