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Disparity of investment inflows among regions in Indonesia

Author

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  • Muhammad Firdaus

    (Faculty of Economics and Management, Institut Pertanian Bogor)

Abstract

Regions in Indonesia have been receiving investment inflows from other countries, with some regions absorb much more than the others do. This study identifies factors that influence foreign investors to come to provinces in Indonesia using a dynamic panel data approach. It investigates data on investment inflows and regional economic development indicators in each province from 1983 until 2009. The estimation results show that the General Methods of Moment system estimators are unbiased, consistent and valid. This study finds some determinants of spatial foreign investment inflows, namely market size, level of economic development, infrastructure, and education level attainment.

Suggested Citation

  • Muhammad Firdaus, 2010. "Disparity of investment inflows among regions in Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 2(3), pages 237-250, April.
    • Handle: RePEc:uii:journl:v:2:y:2010:i:3:p:237-250
    DOI: http://dx.doi.org/10.20885/ejem.v2i3.pp%p
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    References listed on IDEAS

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    More about this item

    Keywords

    Disparity; investment inflows; dynamic panel data;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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