The Cointegration Analysis of the Relationships between Foreign Direct Investment Inflow and Gross Domestic Product in Indonesia

Mukhlis, Imam and Simanjuntak, Timbul H. (2014) The Cointegration Analysis of the Relationships between Foreign Direct Investment Inflow and Gross Domestic Product in Indonesia. Journal of Economics and Sustainable Development, 5 (6). pp. 29-34. ISSN 2222-2855

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Abstract

This research aims to analyze a long run relationship between Foreign Direct Invesment (FDI) inflow and Gross Domestic Product (GDP) in Indonesia economic since 1981 until 2012. The analysis method used is Cointegration Test by using Johansen and Granger Causality Test Model. The result suggests that both variables do not have the same trend in Indonesian economy since 1981-2012. The GDP has increased more slowly, although FDI flow has fluctuated progress in Indonesia. In the long run, there isn't any relationship between FDI flow and GDP in Indonesia. But in the short run, GDP causes FDI flow in Indonesia during 1981-2012.

Item Type: Article
Uncontrolled Keywords: Foreign Direct Investment, Gross National Product, Cointegration Method, Granger Causality
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Depositing User: Perpustakaan Maranatha
Date Deposited: 16 Apr 2015 06:39
Last Modified: 16 Apr 2015 06:39
URI: http://repository.maranatha.edu/id/eprint/11848

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