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Proceedings of the International Conference on Economic, Management, Business and Accounting, ICEMBA 2022, 17 December 2022, Tanjungpinang, Riau Islands, Indonesia

Research Article

Histonomic Approach: Did FDI Affect Labor Productivity in Indonesia after Economy Crisis in 1998?

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  • @INPROCEEDINGS{10.4108/eai.17-12-2022.2333262,
        author={Indra Bastian Tahir and Budiono  Budiono and Armansyah  Armansyah and Alfi  Hendri},
        title={Histonomic Approach: Did FDI Affect Labor Productivity in Indonesia after Economy Crisis in 1998? },
        proceedings={Proceedings of the International Conference on Economic, Management, Business and Accounting, ICEMBA 2022, 17 December 2022, Tanjungpinang, Riau Islands, Indonesia},
        publisher={EAI},
        proceedings_a={ICEMBA},
        year={2023},
        month={6},
        keywords={fdi labor productivity histonomic},
        doi={10.4108/eai.17-12-2022.2333262}
    }
    
  • Indra Bastian Tahir
    Budiono Budiono
    Armansyah Armansyah
    Alfi Hendri
    Year: 2023
    Histonomic Approach: Did FDI Affect Labor Productivity in Indonesia after Economy Crisis in 1998?
    ICEMBA
    EAI
    DOI: 10.4108/eai.17-12-2022.2333262
Indra Bastian Tahir1,*, Budiono Budiono2, Armansyah Armansyah3, Alfi Hendri3
  • 1: Regional Border Management Agency of Kepulauan Riau & Economic Development College of Tanjungpinang, Indonesia
  • 2: Padjadjaran University, Economic Doctoral Program, Bandung, West Java, Indonesia
  • 3: Economic Development College of Tanjungpinang, Indonesia
*Contact email: indra.tahir@gmail.com

Abstract

This journal article examines the impact of Foreign Direct Investment (FDI) on labor productivity in Indonesia during the reform era that began after the Asian economic crisis in 1998. The study uses a histonomic approach to analyze the effects of FDI on labor productivity, as well as other factors such as domestic investment, average wages, education level of labor, and industrial estates. The analysis method used is Fixed Effects Pooled Least Squares with panel data analysis of 30 regions across Indonesia from 2003-2009. The study finds that FDI and industrial zones have a positive and significant impact on labor productivity, while the wage of labor does not have a significant effect. Domestic investment and education level have a positive and significant impact on labor productivity.

Keywords
fdi labor productivity histonomic
Published
2023-06-19
Publisher
EAI
http://dx.doi.org/10.4108/eai.17-12-2022.2333262
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