THE DETERMINANTS OF FDI INFLOWS IN THE INDONESIAN MANUFACTURING SECTOR: SOME EVIDENCE FROM SPATIAL DEPENDENCY MEASUREMENTS

Dadang Ramdhan ()
Additional contact information
Dadang Ramdhan: National Research and Innovation Agency, Jakarta, Indonesia

Bulletin of Monetary Economics and Banking, 2025, vol. 28, issue 1, 35-56

Abstract: The determinants of Foreign Direct Investment (FDI) inflow in the manufacturing sector of Indonesian provinces are the focus of this study. This study demonstrates that spatial dependency in Indonesian FDI location decisions is primarily influenced by cultural heterogeneity and geographic distances, as determined by the Spatial Durbin Model. This finding suggests that the inflow of FDI into a host province is influenced by FDI inflow and other factors in neighboring provinces that are geographically adjacent to the host province and have a similar level of cultural heterogeneity. The primary determinants of these factors are the infrastructure in neighboring provinces and the human capital and innovation capability of the host province.

Keywords: Spatial dependency; Foreign direct investment inflows; Spatial model; Regional development (search for similar items in EconPapers)
JEL-codes: C8 F2 O1 R1 (search for similar items in EconPapers)
Date: 2025
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://bulletin.bmeb-bi.org/cgi/viewcontent.cgi?article=1709&context=bmeb (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:28:y:2025:i:1c:p:35-56

DOI: 10.59091/2460-9196.1709

Access Statistics for this article

Bulletin of Monetary Economics and Banking is currently edited by Paresh Narayan

More articles in Bulletin of Monetary Economics and Banking from Bank Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Lutzardo Tobing ( this e-mail address is bad, please contact ) and Jimmy Kathon ().