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October 11, 2025Jejak (Jurnal Ekonomi dan Kebijakan)/JejakOpen Access

Foreign Direct Investment and Economic Growth in Indonesia: Role of Human Capital and Trade Openness

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Authors

ASAris SetiyantoUniversitas Gadjah MadaAFArdyanto FitradyUniversitas Gadjah Mada

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Implication

Analysis reveals that trade openness enhances economic growth in Indonesia, suggesting a strategic focus on human capital.

Key Points

  • The study shows a significant relationship between foreign direct investment and economic growth.
  • Findings indicate that the interaction of foreign direct investment and human capital is non-significant for long-term growth.
  • Trade openness complements foreign direct investment, positively influencing long-term economic growth.
  • Suggests enhancing human capital quality as a policy approach to maximize foreign direct investment benefits.

Cite This Study

Setiyanto et al. (2024) studied this question.

synapsesocial.com/papers/68e9b2e4ba7d64b6fc13334chttps://doi.org/10.15294/jejak.v17i1.5581
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