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Economics and Finance in Indonesia
Foreign Direct Investment; FDI; foreign ownership; firm productivity
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Full-Text Articles in Social and Behavioral Sciences
The Impact Of Foreign Investment On Firm Performance: Indonesia After The 2007 Fdi Reform, Nauval Hafiluddin, Arianto Arif Patunru
The Impact Of Foreign Investment On Firm Performance: Indonesia After The 2007 Fdi Reform, Nauval Hafiluddin, Arianto Arif Patunru
Economics and Finance in Indonesia
Foreign Direct Investment (FDI) plays a crucial role in the economy of Indonesia. The new FDI law passed in 2007 serves as a new milestone in the FDI regime in Indonesia. As the country implements the new regulation, the impact of foreign investment on firm performance becomes an interesting subject. This paper aims to estimate the effect of foreign investment on the productivity and contribution of firms in relation to the new FDI law in Indonesia. This study employed a combination of Propensity Score Matching (PSM) and Difference-in-Differences (DiD) methods to eliminate endogeneity problems and to examine causality. We discover …