Hubungan Monetary Freedom dan Institutional Quality dengan Arus Masuk Foreign Direct Investment di Negara-negara Asia Tahun 2014-2024

Abstract

Meskipun kawasan Asia menjadi salah satu penerima foreign direct investment (FDI) terbesar di dunia, arus masuk FDI menunjukkan variasi yang cukup besar antarnegara. Penelitian ini bertujuan untuk mengkaji monetary freedom (MF), institutional quality (IQ), serta hubungannya dengan arus masuk FDI pada 35 negara Asia selama periode 2014-2024. Penelitian ini menggunakan regresi data panel Random Effect Model dengan robust standard errors. IQ diukur menggunakan indeks komposit dari enam dimensi Worldwide Governance Indicators melalui PCA, dengan market size, trade openness, dan exchange rate sebagai variabel kontrol. Hasil penelitian menunjukkan bahwa MF memiliki hubungan positif dan signifikan dengan arus masuk FDI, sedangkan IQ memiliki hubungan negatif dan signifikan. Market size, trade openness, dan exchange rate juga berhubungan positif dan signifikan dengan arus masuk FDI. Hasil robustness check menunjukkan bahwa hubungan positif dan signifikan antara MF dan FDI tetap konsisten pada tiga spesifikasi variabel dependen. Temuan ini dapat menjadi pertimbangan dalam perumusan kebijakan terkait MF, IQ, market size, trade openness, dan exchange rate dengan tetap memperhatikan karakteristik ekonomi dan investasi masing-masing negara.

Although Asia is one of the world's largest recipients of foreign direct investment (FDI), FDI inflows vary considerably across countries. This study examines monetary freedom (MF), institutional quality (IQ), and their relationships with FDI inflows across 35 Asian countries during 2014-2024. The study employs panel data regression using a Random Effects Model with robust standard errors. IQ is measured using a composite index of six Worldwide Governance Indicators (WGI) dimensions constructed through PCA, with market size, trade openness, and exchange rate as control variables. The results show that MF is positively and significantly associated with FDI inflows, while IQ shows a negative and statistically significant association. Market size, trade openness, and exchange rate are also positively and significantly associated with FDI inflows. The robustness check confirms that the positive and significant association between MF and FDI inflows remains consistent across three specifications of the dependent variable. These findings may inform policies related to monetary freedom, institutional quality, market size, trade openness, and exchange rate, while considering country-specific economic and investment characteristics.