HUBUNGAN TIMBAL BALIK ANTARA ARUS MASUK FOREIGN DIRECT INVESTMENT DAN HUMAN CAPITAL DI INDONESIA DAN INDIA

Authors

  • Raden Fiat Mahadhika Ramzy PT United Tractors Tbk

DOI:

https://doi.org/10.26593/be.v22i1.3620.65-84

Abstract

Foreign Direct Investment (FDI) benefits the host country by technology transfer and spillover effect toward its workforce. Meanwhile, the quality of human capital (HC) in the host country may attract FDI. This study aims to examine the relationship of FDI inflow and the quality of HC in Indonesia and India and to investigate FDI orientation. Applied two-stage least square to time series data of the year 2000-2015, the result shows a causal relationship between FDI and HC in Indonesia, but one-way relationship from FDI to HC in India. Government spending on education and health has positive effects on HC in both countries. In Indonesia, FDI is positively affected by HC and growth, while in India, only by country risk index.

Keywords: Foreign Direct Investment, human capital, two stage least square

References

Afin, R., Yulistiono, H., & Oktarani, N. A. (2008). Perdagangan internasional, investasi asing, dan efisiensi perekonomian negara-negara ASEAN. Buletin Ekonomi Moneter dan Perbankan, 10(3), 261-296.

Arifin, M. Y., Suswandi, P. E., & Adenan, M. (2015). Pengaruh pengeluaran pemerintah sektor kesehatan, pengeluaran pemerintah sektor pendidikan, dan pertumbuhan ekonomi terhadap indeks pembangunan manusia Jawa Timur 2006-2013. Jurnal Universitas Jember.

Blomstorm, M., & Kokko, A. (2002). FDI and human capital: a research agenda. OECD Development Centre.

Brata, A. G. (2004). Analisis hubungan timbal balik antara pembangunan manusia dan kinerja ekonomi Daerah Tingkat II di Indonesia. Lembaga Penelitian-Universitas Atma Jaya.

Cheung, K. Y., & Ping, L. (2004). Spillover effect of FDI on innovation in China: evidence from the provincial data. China Economic Review, 15(1), 25-44. doi:10.1016/S1043-951X(03)00027-0

Dikit, S. V., & Shringarpure, A. A. (2013). Exchange rate - a key determinant of FDI in India. Advances in Management, 6(9), 55-57.

Dorozynska, A., & Dorozynski, T. (2015). Human capital and FDI in central and eastern europe. Managing Global Transitions, 13(2), 151-170.

Dua, P., & Garg, R. (2015). Macroeconomics determinants of foreign direct investment: evidence from India. The Journal of Developing Areas, 49(1).

Dunning, J. H. (1993). Multinasional enterprises and the global economy. Wokingham, England: Addison-Wesley Publishing Company.

Kar, S. (2013). Exploring the causal link between FDI and human capital development in India. India Institute of Management Calcutta, 40(1-2), 3-13.

Kementerian Keuangan Republik Indonesia. (2014). Data pokok APBN 2010-2014. Jakarta: Kementerian Keuangan Republik Indonesia.

Kurniati, Y., Prasmuko, A., & Yanfitri. (2007). Determinan FDI (faktor-faktor yang menentukan investasi asing langsung). Working Paper.

McConnell, C. R., Brue, S. L., & Macpherson, D. A. (2010). Contemporary labor economics (9th ed.). New York: The McGraw-Hill Companies.

Mello, L., & Fukusaku, K. (2000). Trade and foreign direct investment in Latin America and Southeast Asia: temporal causality analysis. Journal of International Development, 12(7), 903-924. doi:10.1002/1099-1328(200010)12:7<903::AID-JID695>3.0.CO;2-8

Nafukho, F. M., Hairston, N. R., & Brooks, K. (2004). Human capital theory: implication for human resource development. Human Resource Development International, 7(4), 545-551. doi: 10.1080/1367886042000299843

Razin, A., & Sadka, E. (2000). Unskilled migration: a burden or a boon for the welfare state? The Scandinavian Journal of Economics, 102(3), 463-479. doi:10.1111/1467-9442.00210

Salvatore, D. (2013). International economics (11th ed.). New York: Wiley.

Sarwedi, S. (2004). Investasi asing langsung di Indonesia dan faktor yang memengaruhinya. Jurnal Akutansi dan Keuangan, 4(1), 17-35. doi: 10.9744/jak.4.1.pp.%2017-35

Soltanpanah, H., & Karimi, M. S. (2013). Accumulation of human capital and foreign direct investment (FDI) inflows in ASEAN-3 countries (Malaysia, Thailand, Indonesia). African Journal of Business Management, 17(7), 1599-1605. doi:10.5897/AJBM11.1681

Tjiptoherijanto, P., Yasin, M., Hasan, B., & Hadisumarto, D. (1982). Sumber daya manusia, kesempatan kerja dan pembangunan ekonomi. Jakarta: Lembaga Penerbit Fakultas Ekonomi Universitas Indonesia.

Todaro, M. P. (1993). Pembangunan ekonomi di dunia ketiga (3rd ed.). (B. Abdullah, Trans.) Jakarta: Gelora Aksara Pratama.

Todaro, M. P., & Smith, S. C. (2006). Economics development (9th ed.). London: Pearson Education.

World Bank Group. (2014). Doing Business 2015 Going Beyond Efficiency. Washington DC: International Bank for Reconstruction and Development / The World Bank . doi:10.1596/978-1-4648-0351-2

World Bank Group. (2016). World development indicators 2016. World Bank Publications.

World Investment Report. (2010). The global competitiveness report 2010. Geneva: World Economic Forum.

Downloads

Published

2019-12-11