Proceedings of the 1st Workshop on Multidisciplinary and Its Applications Part 1, WMA-01 2018, 19-20 January 2018, Aceh, Indonesia

Research Article

Foreign Direct Investment, Portfolio Investment, and Economic Growth in Indonesia: Vector Auto Regression Approach

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  • @INPROCEEDINGS{10.4108/eai.20-1-2018.2282084,
        author={Marzuki  Marzuki and Wahyuddin  Albra and Nazir  Nazir and Fahmy  Azhari and Apridar  Abdurrahman and Ghazali  Syamni},
        title={Foreign Direct Investment, Portfolio Investment, and Economic Growth in Indonesia: Vector Auto Regression Approach},
        proceedings={Proceedings of the 1st Workshop on Multidisciplinary and Its Applications Part 1, WMA-01 2018, 19-20 January 2018, Aceh, Indonesia},
        publisher={EAI},
        proceedings_a={WMA-1},
        year={2019},
        month={9},
        keywords={portfolio investment economic growth},
        doi={10.4108/eai.20-1-2018.2282084}
    }
    
  • Marzuki Marzuki
    Wahyuddin Albra
    Nazir Nazir
    Fahmy Azhari
    Apridar Abdurrahman
    Ghazali Syamni
    Year: 2019
    Foreign Direct Investment, Portfolio Investment, and Economic Growth in Indonesia: Vector Auto Regression Approach
    WMA-1
    EAI
    DOI: 10.4108/eai.20-1-2018.2282084
Marzuki Marzuki1,*, Wahyuddin Albra1, Nazir Nazir1, Fahmy Azhari1, Apridar Abdurrahman1, Ghazali Syamni1
  • 1: Departement of Management Faculty of Economic and Business, Universitas Malikussaleh, Aceh, Indonesia
*Contact email: marzuki_unimal@yahoo.com

Abstract

The goal of this research is to examine the Foreign Direct Investment (FDI), Portfolio Investment (PI) and Economic Growth (EG) correlation in Indonesia. This research is using the Economic growth, foreign direct investment and portfolio investment data during 2010-2016, which is accessed from www.bps.go.id; www.bkpm.go.id and www.bi.go.id, and using Vector Auto Regression method. The result shows that FDI and EG have two way correlationship, meaning the connection between past Indonesia FDI and recentIndonesia EG are exist. PI and EG have the same correlationship yet it does not influence the investors to invest at the Indonesia Stock Exchange, as they, particularly foreign investors, are looking forward to the Indonesia Macro-economy policies or recent information about it.