1 AIT Asian Institute of Technology

The impact of foreign direct investment on export performance and employment generation in the Indonesian manufacturing sector

AuthorSudaryanto
Call NumberAIT Thesis no.IE-94-22
Subject(s)Investments, Foreign--Indonesia
Export marketing--Indonesia

NoteA Thesis submitted in partial fulfillment of the requirement for the degree of Master of Science, School of Engineering and Technology
PublisherAsian Institute of Technology
Series StatementThesis ; no. IE-94-22
AbstractThis thesis clo<.: 11111e11ts the impact of economic and political factors on foreign direct investrne111 (rr.>J) flows to ASEAN countries during the past 14 years. Based on national as well as regional, this slucly analyses the factors responsible for the successful foreign investment flows in /\SEAN countries. To measure the level of FDI inflows in ASEAN countries, a model is established. Multiple regression analysis is used to investigate the relationship between dependent nncl independent variables. The study first examines factors responsible for attracting foreign direct investment inflows in t·he ASEAN countries. The result of the model shows that some of the economic and political factors are significantly responsible for the country attractiveness to FDI. Second, based on the result obtained from the model, the economic impact of FDI in Indonesia is measured in lcrrns of manufactured export and employment generation in the manufacturing sector. FDI in Indonesian 1w111ufacturing plays a small role in employment alleviation, due to the technique of production used by the foreign affiliates which are more capital intensive than those of clorneslic in vestmenl. However, certain types of FDI could generate more employment opportunity, such as in textiles and metal goods industries. The impact of FDI on manufacturing exports performance is very significant clue to direct and indirect effects, which emanating from foreign as well as local films.
Year1994
Corresponding Series Added EntryAsian Institute of Technology. Thesis ; no. IE-94-22
TypeThesis
SchoolSchool of Engineering and Technology (SET)
DepartmentDepartment of Industrial Systems Engineering (DISE)
Academic Program/FoSIndustrial Engineering (IE)
Chairperson(s)Tang, John C.S. ;Paul, Himangshu
Examination Committee(s)Tabucanon, Mario T.
Scholarship Donor(s)The Government of Belgium;
DegreeThesis (M.Sc.) - Asian Institute of Technology, 1994


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