Analysis Of Factors Affecting Foreign Direct Investment (FDI) In East Kalimantan Province (2015-2019)

Abstract

This analysis aims to find out the factors that influence FDI in East Kalimantan Province. The data used in this analysis is secondary data, which means that the researcher does not independently gather data, but rather collects data from reliable sources, in this case the researcher uses data from the Central Bureau Statistics of East Kalimantan (BPS Kaltim). The data were taken from 9 regencies / municipalities. The dependent variable is FDI and the independent variables are GRDP per capita, Human Development Index (HDI), Electricity Infrastructure, Communication Infrastructure, Road Infrastructure Length, and Government Expenditure, which fulfilled the criteria for this research data from 2015-2019. This study model is a regression of panel data that is a mixture of cross-section data and time series data and is analyzed using Eviews 9 software, with multiple linear regression models of fixed effect analysis as the chosen model. There are several tests used in this analysis, such as the t test (testing individual variables), F test (overall hypothesis test for regression coefficient), and 𝑅 2

(goodness of fit). The research findings showed that the GRDP per capita, HDI, communication infrastructure, and length of road infrastructure variables have a positive and significant impact on FDI in East Kalimantan. Meanwhile, the electricity infrastructure and government expenditure variables do not have a significant effect on FDI in East Kalimantan.