THE DETERMINANTS OF FOREIGN DIRECT INVESTMENT (FDI) IN BANTEN PROVINCE 2011-2015

Abstract

This study aims to analyze the factors that determine foreign direct investment in Banten Province in the period of 2011-2015. Those factors are economic growth, regional minimum wage, and labor force. The data used in this research is secondary data from central bureau of statistics (BPS) and investment coordinating board (BKPM) of Banten province 2011-2015. The analysis used in this study is panel data analysis with fixed effect model. The sample data is the data from three regions and four cities in the province of Banten in the period of 2011-2015.The result of the analysis shows that the foreign direct investment in Banten province has been significantly influenced by economic growth and regional minimum wage. Economic growth and regional minimum wage give positive impact toward foreign direct investment. Meanwhile, labor force does not significantly affect the foreign direct investment in Banten province