Foreign Direct Invesment Effect on Asean Countries GDP

DOI

10.2991/icebess-18.2019.24How to use a DOI?

Keywords

investment, FDI, GDP, ASEAN

Abstract

Foreign Direct Investment (FDI) occurs when a company from a country invests in a long period of time to a company in another country. This study uses quantitative methods with panel data secondary from 2012-2016 by combining 10 ASEAN countries (Indonesia, Malaysia, Singapore, Thailand, Philippines, Vietnam, Myanmar, Brunei, Laos, Cambodia). The result of the partial t-test is obtained that the t-statistical probability value is 0.0026. Then the statistical probability <α = 5% is 0.0000 <0.05. Therefore, it can be concluded that the FDI variable partially influences the positive significance of the GDP variable. From the calculation of the F value, it is known that F-counts> F-table (1480.07> 4.03) then H0 is rejected and H1 is accepted (F-count is in the H1 reception area). Then also the probability (prob.) Of the table above is equal to 0.000> 0.005, then H0 is rejected and H1 is accepted. So that simultaneously or together the independent variables have a significant effect on the dependent variable. Efforts to increase the interest of foreign investors to invest in ASEAN countries are needed. Some policy strategies that can be considered to improve economic growth are (1) Increasing FDI growth shows that the potential of foreign financing sources is relatively large and still open. This is in line with the capabilities and advantages that are proven to contribute to the acceleration of development in a country. Therefore, countries in ASEAN need to improve infrastructure, streamline bureaucracy to attract foreign investors. (2) Economic integration in the form of trade, investment and financial liberalization encourages increased activity of the Multi National Company.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Agung Edi Rustanto
AU  - Jaenudin Akhmad
AU  - Edi Wahyu Wibowo
PY  - 2019/04
DA  - 2019/04
TI  - Foreign Direct Invesment Effect on Asean Countries GDP
BT  - Proceedings of the International Conference of Ethics on Business, Economics, and Social Science (ICEBESS 2018)
PB  - Atlantis Press
SP  - 133
EP  - 138
SN  - 2352-5398
UR  - https://doi.org/10.2991/icebess-18.2019.24
DO  - 10.2991/icebess-18.2019.24
ID  - Rustanto2019/04
ER  -