Marselina, Marselina and Prasetyo, Joko (2022) The Effect of Natural Resources Rent And Institutional Factors on Investment Inflow. QUALITY Access to Succes, 24 (192). pp. 208-2013. ISSN 1582-2559

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Abstract

In addition to the rental price of natural resources and economic growth, institutional factors are one of the important factors influencing the interest of foreign investors in investing their capital in a country. According to the Heritage Organization, the important institutional factors are economic freedom and political stability. This study investigates the effect of economic freedom, political stability, natural resource rental rates and economic growth on the interest of investors to invest in a country. This study was conducted in 10 ASEAN countries during the period 2005-2019. The method used in this research is panel data regression. The results showed that through the Chow and Haus- man tests, it was found that the Random Effect Model (REM) is the best choice of model to predict this investment inflow phenomenon. Furthermore, the variables of economic freedom and political stability as institutional factors, as well as economic growth in 9 ASEAN countries are able to attract foreign investors, and conversely, the relatively more expensive rental price for natural resources reduces the interest of foreign investors to invest their capital. For this reason, ASEAN member countries need to improve the structure of rental prices and the quality of natural re- sources as well as improve the quality of institutions, especially local institutions by reforming regulations to facilitate free and safe business operations and maintain political stability in their countries, through the implementation of consistent policies. which gives a sense of security to investing. Bureaucratic reform through simplification of regula- tions must be carried out so that business infrastructure is created efficiently.

Item Type:	Article
Subjects:	H Social Sciences > H Social Sciences (General)
Depositing User:	Marselina Marselina
Date Deposited:	09 Jan 2023 01:32
Last Modified:	09 Jan 2023 01:32
URI:	http://repository.lppm.unila.ac.id/id/eprint/47633

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