Institusion
Universitas Muhammadiyah Surakarta
Author
Kurniasari, Indah
, Dr.Daryono Soebagyo,M.Ec
Subject
HG Finance
Datestamp
2018-02-06 04:28:12
Abstract :
This study entitled "Analysis of Influence of Interest Rate, Inflation, and
Exchange Rate to Foreign Investment in Central Java Year 1990-2016". This
study aimed to analyze and know how much influence the interest rates, inflation,
and exchange rate on the value of foreign investment in the province of Central
Java in 1990-2016. In this study used secondary data that is time series dara year
1990-2016, that is data of value of foreign investment in central Java Province,
interest rate, inflation, and exchange rate. The analytical method used is the
regression Error Correction Model (ECM).
The result of the analysis shows that the variable of interest rate has a
positive and significant influence to foreign investment in Central Java either in
2
short and long term, exchange rate variable also has a positive and significant
influence to foreign investment in Central Java either in short and long term.
Therefore, the inflation variable has a negative and significant influence in the
short and long term to foreign investment in Central Java. In an effort to increase
the value of foreign investment in Central Java, it is expected that there will be a
big contribution from the government to control the interest rate, inflation,
exchange rate and ease investment permit. so as to attract foreign investors to
invest in Central Java. The greater the value of foreign investment in Central Java
will have an impact on increasing economic growth and the expansion
employment in Central Java.