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

Year: 2025

Type: article

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.

Source: Jurnal Ilmu Ekonomi JIE

DOI: 10.22219/jie.v9i04.42600

Authors: Mutia Indah Wulandari, Moh Saiful Anam, Handoko Sosro Hadi Wijoyo

Institution: Universitas Bojonegoro

Language: English

Topic: International Business and FDI

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: hybrid

OpenAlex ID: W7134111007

FWCI: 0.486

Cites: 11

Cited by: 1

Related to: 10