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ANALYSIS OF FACTORS AFFECTING FOREIGN DIRECT INVESTMENT IN ASEAN COUNTRIES


Author: Ferra Destiana Dewi, Septriani Septriani*
Department of Economic Development, Bengkulu University, Indonesia.
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Abstract:
This study aims Analysis Of Factors Affecting Foreign Direct Investment In Asean Countries In 2016-2021. This type of research is explanatory research. Furthermore, the approach used in this study is a quantitative methodology approach that uses secondary data from 2016-2021. This data is used as information to be used in research and obtained from the official website of the worldbank for 2016-2021. The sample of this study is 5 countries with the highest value of foreign investment and limited data consisting of Singapore, Indonesia, Malaysia, Vietnam, and Thailand. This study used panel data regression analysis tools. The results of this study found that partially economic growth has a significant positive effect on foreign direct investment, inflation has a significant positive effect on foreign direct investment and interest rates have a significant positive effect on foreign direct investment. Based on test F, it was obtained that the variables of economic growth, inflation and interest rates simultaneously had a significant positive effect on foreign direct investment with an Adj.R-Square value of 93.79 percent. These results show that 6.21 percent of foreign direct investment is explained by other variables outside the model.