The Effect of Foreign Direct Investment Human Capital and Community Welfare

Authors

  • Ifqi Khairunnisa  Economics, IPB University, Bogor, Indonesia
  • Sri Hartojo  Economics, IPB University, Bogor, Indonesia
  • Yeti Lis Purnamadewi  Economics, IPB University, Bogor, Indonesia

DOI:

https://doi.org/10.32628/IJSRSET218523

Keywords:

Foreign Direct Investment, Economic Growth, Human Capital, Community Welfare, 2SLS

Abstract

National development goals are not merely to create growth in Gross Domestic Product (GDP) and high per capita income. But more than that, it expected to alleviate poverty levels and income inequality in every class of society. Foreign Direct Investment (FDI) one of the most important investment to accelerate economic growth. The advantages of FDI inflow for host country are: capital accumulation; job creation; transfer of technology and management; and access to international market networks. This study aims to determine the relationship between FDI, economic growth, human capital, and community welfare. The quantitative analysis method in this study uses a simultaneous equation system model with six structural equations: domestic investment, economic growth, public consumption, education, health, unemployment and poverty. In addition, there are 3 identity equations: investment equation, the labour force, and economic growth. All data is a combination of cross-sectional and time-series data. The cross-section data used are 33 provinces in Indonesia and the time series data for the period 2010 to 2019.

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International Journal of Scientific Research in Science, Engineering and Technology

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Published

2021-10-30

Issue

Volume 8, Issue 5, September-October-2021

Section

Research Articles

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This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

[1]
Ifqi Khairunnisa, Sri Hartojo, Yeti Lis Purnamadewi "The Effect of Foreign Direct Investment Human Capital and Community Welfare" International Journal of Scientific Research in Science, Engineering and Technology (IJSRSET), Print ISSN : 2395-1990, Online ISSN : 2394-4099, Volume 8, Issue 5, pp.244-251, September-October-2021. Available at doi : https://doi.org/10.32628/IJSRSET218523