Investasi Asing Langsung Di Indonesia Dan Faktor Yang Mempengaruhinya

There have been many studies on the determinants of foreign direct investment or FDI. Howerer, they are different both in the methodologies and the results. Although the influence of many factors that are assumed to be fixed (ceteris paribus) are very strong-such as macroeconomic variables GDP, economic growth and inflation, they left various conclusions and debates. FDI can be one of the important sources of capital in developing countries, and contribute, the national development by transfer of asset, management, and technology to stimulate the economy of the country. The research model uses some domestic characteristics, that will be combined in a short and long run period by using OLS. The Error Correction Model (ECM) and Granger Causality Test, are applied to the determine the factors that influence the foreign direct investment (FDI) in Indonesia within 1978 -2001. The result shows that economic variables such as GDP, growth, wage and export have positive effect to FDI. While non-economic variables such as Political Stability (SP) shows a negative effect. This conclusion is in a harmony with the empirical study done by Schneider and Frey (1986) that politicaal stability has a negative relations ship with FDI