• [email protected]
  • +971 507 888 742
Submit Manuscript
SciAlert
  • Home
  • Journals
  • Information
    • For Authors
    • For Referees
    • For Librarian
    • For Societies
  • Contact
  1. The International Journal of Applied Economics and Finance
  2. Vol 4 (4), 2010
  3. 220-229
  • Online First
  • Current Issue
  • Previous Issues
  • More Information
    Aims and Scope Editorial Board Guide to Authors Article Processing Charges
    Submit a Manuscript

The International Journal of Applied Economics and Finance

Year: 2010 | Volume: 4 | Issue: 4 | Page No.: 220-229
DOI: 10.3923/ijaef.2010.220.229

Facebook Twitter Digg Reddit Linkedin StumbleUpon E-mail

Article Trend



Total views 455

Search


Authors


Yuniarto Hadiwibowo

Country: Japan

Keywords


  • resource
  • integration
  • capital account
  • interest
  • Saving
  • ECM
Research Article

Capital Inflows and Investment in Developing Countries: The Case of Indonesia

Yuniarto Hadiwibowo
This study reviews the capital flows and investment in an open economy with the highest degree of capital account openness, managed exchange rate regime and high economic growth. We employ generalized error correction model to estimate the short-run and long-run relationships. The free capital mobility could be confirmed from the close relationship between domestic and benchmark interest rate. Interestingly, we find that investment moved one to one with saving. In this sense, the amount of capital inflows was not correlated with domestic investment. Net factor income from abroad offset capital inflows. Therefore, simplistic policy to attract capital inflows may not always be the optimal solutions for developing countries. The net resource flows should be taken into account. Not only interest payment for foreign debt, income payment for direct investment might also cause a high burden on the economy. Developing countries should design policies to improve domestic productivity.
PDF Fulltext XML References Citation

How to cite this article

Yuniarto Hadiwibowo, 2010. Capital Inflows and Investment in Developing Countries: The Case of Indonesia. The International Journal of Applied Economics and Finance, 4: 220-229.

DOI: 10.3923/ijaef.2010.220.229

URL: https://scialert.net/abstract/?doi=ijaef.2010.220.229

Related Articles

Analysis of Causal Relationship Between Tourism Development, Economic Growth and Foreign Direct Investment: an ARDL Approach
The Employment Effect of ICTs in the Organization of Islamic Conference
An Assessment of the Impact of Exchange Rate Deregulation and Structural Adjustment Programme on Cotton Production and Utilization in Nigeria
The J-curve: Evidence from Commodity Trade Between Malaysia and Japan
Herding Behaviour in an Emerging Stock Market: Empirical Evidence from Vietnam
External Debt: Some Experience From Turkish Economy
The Importance of Financial Stability for Capital Flows to Emerging Economies Referring to the African Continent and South Africa

Leave a Comment


Your email address will not be published. Required fields are marked *

Useful Links

  • Journals
  • For Authors
  • For Referees
  • For Librarian
  • For Socities

Contact Us

Office Number 1128,
Tamani Arts Building,
Business Bay,
Deira, Dubai, UAE

Phone: +971 507 888 742
Email: [email protected]

About Science Alert

Science Alert is a technology platform and service provider for scholarly publishers, helping them to publish and distribute their content online. We provide a range of services, including hosting, design, and digital marketing, as well as analytics and other tools to help publishers understand their audience and optimize their content. Science Alert works with a wide variety of publishers, including academic societies, universities, and commercial publishers.

Follow Us
© Copyright Science Alert. All Rights Reserved