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Are There Effects of the Investment Spillover in Central Sulawesi?

Author

Listed:
  • Tina Melinda
  • Christina Whidya Utami
  • Tao Wang
  • Aria Ganna Henryanto
  • Agus Supriyadi

Abstract

Purpose: This study analyzes the effect of FDI on the Gross Regional Domestic Product (GRDP) performance of provinces in Sulawesi Island during the 2014-2019 period. Methodology/Approach: The time span of this research was chosen as a relative approach to the initiation of One Belt One Road (OBOR) Initiatives or now known as Belt and Road Initiatives (BRI) which invested heavily in Central Sulawesi Province. This proves that the presence of foreign investment in Sulawesi Island can be expected to advance the regional economy. Findings: The estimation results of the Granger Causality Test (GCT) indicate that there is a spillover effect of economic growth in Central Sulawesi Province on the economic growth of other provinces in Sulawesi Island. Originality: This research provides a strong signal that economic activity in Central Sulawesi Province may have implications for the dynamics and performance of the economy in the surrounding provinces.

Suggested Citation

  • Tina Melinda & Christina Whidya Utami & Tao Wang & Aria Ganna Henryanto & Agus Supriyadi, 2022. "Are There Effects of the Investment Spillover in Central Sulawesi?," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 248-260.
    • Handle: RePEc:ers:ijebaa:v:x:y:2022:i:1:p:248-260
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    References listed on IDEAS

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    4. Yu Fu & Agus Supriyadi & Tao Wang, 2018. "China’s Outward FDI in Indonesia: Spatial Patterns and Determinants," Sustainability, MDPI, vol. 10(12), pages 1-20, December.
    5. Ari Kokko & Mario Zejan & Ruben Tansini, 2001. "Trade regimes and spillover effects of FDI: Evidence from Uruguay," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(1), pages 124-149, March.
    6. Jordi Jofre-Monseny & Raquel Marín-López & Elisabet Viladecans-Marsal, 2012. "What underlies localization and urbanization economies? Evidence from the location of new firms," Working Papers XREAP2012-08, Xarxa de Referència en Economia Aplicada (XREAP), revised May 2012.
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    More about this item

    Keywords

    eign Direct Investment (FDI); Belt and Road Initiatives (BRI); Economic Growth; Spillover effect; Gross Regional Domestic Product (GDRP).;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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