Open AccessPengaruh Foreign Direct Investment (FDI) Terhadap Pertumbuhan Ekonomi di Nusa Tenggara Barat Tahun 2010-2014
Author(s) -
Munyta Mentari,
Abdul Hadi Ilman,
Didi Suwardi
Publication year - 2017
Publication title -
jurnal ekonomi dan bisnis indonesia
Language(s) - English
Resource type - Journals
eISSN - 2621-9255
pISSN - 2528-6625
DOI - 10.37673/jebi.v2i2.9
Subject(s) - foreign direct investment , hausman test , human capital , panel data , economics , fixed effects model , variables , investment (military) , agricultural economics , econometrics , mathematics , economic growth , politics , statistics , political science , macroeconomics , law
This research aims to analyse the effect of Foreign Direct Investment (FDI) on the economic growth of West Nusa Tenggara (NTB) province within 2010-2014. The dependent variable is economic growth, meanwhile the independent variables are : 1) FDI proxied from the percentage of foreign capital investment towards PDRB; 2) Schooling or level of education proxied from the percentage of up to 15 years –old people who complete senior high school education level; 3) Domestic investment proxied from the percentage of domestic capital investment towards PDRB; 4) The interaction of FDI and human capital (level of education) and the control variables which consist of APBD proxied from the percentage of APBD towards PDRB and inflation variable proxied from PDRB deflator. Data analysis used in this study is regression model of panel data. The data is obtained from 10 districts and cities in NTB province from 2010 to 2014. The chow test and hausman test resulted to use fixed effect model in that panel data regression procedure. The results show that FDI has a positive yet unsignificant effect on the economic growth with the confidence level of 95%. It is caused by the low level of technological transfer by the province human resources due to the domination of less educated workers.