The Gap in Economic Growth from Foreign Investment and Domestic Investment across Provinces in Indonesia

Asnawi, Asnawi and Irfan, Irfan and M. Fathul, Chairi Ramadhani (2020) The Gap in Economic Growth from Foreign Investment and Domestic Investment across Provinces in Indonesia. Electronic Journal of Education, Social Economics and Technology, 1 (1). pp. 34-38. ISSN 2723-6250

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Abstract

The study aims to determine the effect of Foreign Investment (FDI) and Domestic Investment (PMDN) on Cross-Province Economic Growth in Indonesia in 2014-2018. This study uses secondary data with Panel and Poled data consisting of 34 provinces in Indonesia, and use the 5 years time-series data during 2014-2018. The analytical method used is the panel regression analysis method with the Fixed Effect model and poled model. The results showed that foreign investment and domestic investment had a positive and significant effect on economic growth across provinces in Indonesia. Furthermore, the results of the study show that foreign investment and domestic investment have a significant and positive effect on economic growth in 8 provinces in Indonesia, and the foreign investment has a significant and positive influence on economic growth in 9 Provinces in Indonesia. However, only North Maluku, where foreign investment has a significant and negative effect on economic growth, and domestic investment significantly and positively affects economic growth in 6 provinces in Indonesia. Key Words: Foreign Investment, Domestic Investment, Economic Growth

Item Type: Article
Subjects: E Economy, Accounting, Development > E11 Economy (General)
Depositing User: Asnawi Asnawi
Date Deposited: 07 Sep 2020 03:12
Last Modified: 07 Sep 2020 03:12
URI: http://repository.unimal.ac.id/id/eprint/5970

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