Open AccessPENGARUH FOREIGN DIRECT INVESTMENT DAN AFTA TERHADAP KESEMPATAN KERJA SEKTORAL DI ASEAN 5
Author(s) -
Ilhamdi Ilhamdi,
Rina Oktaviani,
Yeti Lis Purnamadewi
Publication year - 2018
Publication title -
jurnal ekonomi dan kebijakan pembangunan
Language(s) - English
Resource type - Journals
eISSN - 2686-2514
pISSN - 1979-5149
DOI - 10.29244/jekp.4.2.140-152
Subject(s) - foreign direct investment , tertiary sector of the economy , agriculture , wage , panel data , investment (military) , business , service (business) , manufacturing , economics , international economics , international trade , labour economics , economy , geography , macroeconomics , archaeology , marketing , political science , law , econometrics , politics
This study aims to analyze the impact of Foreign Direct Investment (FDI) and ASEAN Free Trade Agreement (AFTA) on sectoral employment in ASEAN 5. The analysis focused on five main sectors, namely agriculture, mining, manufacturing, construction and service sectors. This paper uses panel data approach with Fixed Effect Model. Variable used include employment as an edogenous variable, while GDP, wages and AFTA as exogenous variables. Cross section data that are used in this study consist of ASEAN 5 countries, namely Indonesia, Malaysia, Philippines, Thailand and Vietnam with periods of observation as much as 9 years, from 2006 until 2014.The result of this paper that FDI, GDP, wages and AFTA have different impacts in each sector. FDI has positive impact on employment in service sector. GDP has positive impact on employment in manufacturing, construction and service sectors. While GDP in the agricultural and mining sectors has negative impact on employment. The wage has a positive impact on employment in the mining and agricultural sectors. ASEAN Free Trade Agreement (AFTA) that took place in 2010 has a positive impact on employment in the manufacturing and mining sectors.Foreign Direct Investment is one factor to overcome employment issues in ASEAN 5, especially in service sector. While GDP becomes an important variable in enhancing ASEAN 5 employment in the manufacturing, construction and services. Increasing wages can be applied on agriculture and mining as it has a positive impact on employment. AFTA that has taken place is proper policy for the ASEAN 5 to encourage economic growth in the mining and manufacturing sectors that have an impact on increasing demand of labor in the sector.