foreign direct investment and one digit standard international trade classicification

Clicks: 258
ID: 164367
2011
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Abstract
The relationship between trade and Foreign Direct Investment (FDI) has been indicated as one of prominent development paths toward economic development. However, this relation is not straightforward due to the complex multinational companies’ investment motivation. This paper develops an exploratory research on the FDI-trade relation in one digit Standard International Trade Classification (SITC) for Indonesia with Japan and the United States of America during 1991-2003, using a Granger causality test. The result indicates strong FDI-trade relationship in natural resources and mining industry, showing that resources endowment is an advantage for Indonesia. It also finds that resource-seeking FDI has predominantly happened during that period.

Keywords: Foreign direct investment, trade, one-digit SITC, granger causality
JEL classification numbers: F12, F14
Reference Key
budijanto2011economicforeign Use this key to autocite in the manuscript while using SciMatic Manuscript Manager or Thesis Manager
Authors ;Murman Budijanto;Bagus Rachman
Journal neurological sciences
Year 2011
DOI
DOI not found
URL
http://jurnal.uii.ac.id/index.php/JEP/article/view/2309
Keywords
economics as a science

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