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September 10, 2025International Journal of Business and Applied EconomicsOpen Access

Analysis of Factors Influencing Foreign Direct Investment in Indonesia Using the Dunning Model

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Authors

MKMuhammad KurniawanUniversitas PalembangWWWirya WardayaUniversity of Pembangunan Nasional Veteran Jawa Timur

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Implication

Descriptive quantitative analysis reveals trade openness and infrastructure significantly impact foreign direct investment in Indonesia.

Key Points

  • Trade openness and infrastructure significantly affect foreign direct investment over the long term, while GDP and exchange rate do not.
  • In the short term, only trade openness shows a significant impact on foreign direct investment in Indonesia.
  • The study employed a descriptive quantitative method with annual data spanning from 2004 to 2023.
  • Findings suggest that improving international trade and infrastructure is crucial for attracting foreign investment.

Cite This Study

Kurniawan et al. (2025) studied this question.

synapsesocial.com/papers/68c1bd3254b1d3bfb60ee3bahttps://doi.org/10.55927/ijbae.v4i4.220
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1Determinants of Indonesia’s Economic Growth in 1990–2023: An Error Correction Model (ECM) Approach2025
  2. 2The effect of foreign direct investment on economic growth in Indonesia: A case study using secondary data for 1995-20232025
  3. 3Business Investment Opportunities for Community Welfare: Evidence from Indonesia2024
  4. 4Foreign Direct Investment and Economic Growth in Indonesia: Role of Human Capital and Trade Openness2024 · 2 citations
  5. 5FOREIGN DIRECT INVESTMENT ANALYSIS OF INDONESIA 1992 – 20222024