Foreign Direct Invesment Flows in OIC Country
DOI:
https://doi.org/10.36835/iqtishoduna.v9i2.495Keywords:
corruption, FDI, economic growth, inflation, politicsAbstract
Investment is one of the funding needed by all countries to develop manufacturing and the economy. This study aims to examine the factors affecting the foreign direct investment flow among OIC countries. In order to achieve the goal, the authors use quantitative research methods using a regression test of data panels on the secondary data that has been collected. Panel data for the period 2012-2018 are used. The results showed that inflation and political stability have a significant and positive impact on FDI's entry. Meanwhile, corruption variables have a negative not significant effect on FDI and economic growth variables have a positive effect but not significant in FDI’s entry in OIC Country. This research examines simultaneously the factors that determine FDI flow in OIC Country. This Paper provides value for policymakers in OIC Country recognized the need for outside capital as one of fund for the public. As well as consider the investor takes the decision in investing his funds especially in Asian countries member of Islamic Cooperation (OIC).
Downloads
References
Abdelaziz, H., & Helmi, H. 2017. Does corruption limit FDI and economic growth? Evidence from MENA countries". International Journal of Emerging Markets, 550-571.
Anggraeni, A., & Sulasmiyati, S. 2019. Pengaruh Corruption perception Index, inflasi dan Suku bunga terhadap Foreign Dirrect Investment(studi pada negara ASEAN periode 2012-2017). Jurnal Administrasi Bisnis, 1-10.
castro, c., & nunes, p. 2013. Does corruption inhibit foreign direct investment? ca, 61-83.
Dewi, T., & Cahyono, H. 2016. Pengaruh pertumbuhan ekonomi, Bi rate dan inflasi terhadap investasi asing langsung di Indonesia. Jurnal Pendidikan Ekonomi, 1-7.
Fazira, D. R., & Cahyadin, M. 2018. The Impact of interest rate, corruption perception index and economic growth on foreign direct investment. Jurnal keuangan dan perbankan, 707-713.
Gani, W. 2014. Pengaruh Political Risk, GDP, GNP, Kurs, Wage Cost terhadap Foreign Direct Investment di Indonesia. FINESTA, 109-117.
Godinez, j., & Garita, m. 2015. Corruption and foreign direct investment: a study of Guatemala. Emerging economies and multinational enterprises, 297-326.
Quazi, R., & Vemuri, V. 2014. Impact of corruption on foreign direct investment in Africa. International Buisness Research, 1-10.
World bank, Politic Stability in OIC Countries, dalam www.worldbank.com, accessed October 2019
ISDB, World Investment Report, dalam www.isdbdata.com accessed October 2019
Transparency Index, Corruption stability in OIC Countries dalam www.transparancyindex.com accessed October 2019
Papaconstantinou, P., Tsagkanos, A.G., Siripoulos, G. 2013. How bureaucracy and corruption affect economic growth and convergence in the European Union: the case of Greece. Managerial Finance, vol . 39 no 09, pp.837-847
Al-Khouri, R. 2015. Determinants of foreign direct and indirect investment in the MENA region. Multinational Business Review, 23(2), 148–166. https://doi.org/10.1108/MBR-07-2014-0034
Wang, L., & Li, S. 2018. Determinants of foreign direct and indirect investments from the institutional perspective: A comparative analysis between emerging and mature markets. International Journal of Emerging Markets, 13(5), 1330–1347. https://doi.org/10.1108/IJoEM-01-2018-0038
Al-Khouri, R. 2015. Determinants of foreign direct and indirect investment in the MENA region. Multinational Business Review, 23(2), 148–166. https://doi.org/10.1108/MBR-07-2014-0034
Wang, L., & Li, S. 2018. Determinants of foreign direct and indirect investments from the institutional perspective: A comparative analysis between emerging and mature markets. International Journal of Emerging Markets, 13(5), 1330–1347. https://doi.org/10.1108/IJoEM-01-2018-0038
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2020 Nida Laili Fitriyah, Alvira Aina A'yun, Khofidlotur Rofi’ah, Sri Herianingrum
This work is licensed under a Creative Commons Attribution 4.0 International License.
The journal can be accessed publicly, which means that all content is provided freely accessible without charge to either the user or the institution. Users are allowed to read, download, copy, distribute, print, search, or cite to the full text of the article did not have to ask permission from the publisher or author.
