| dc.description.abstract | This study analyzed the influence of macroeconomic and institutional
variables on foreign portfolio investment inflows in two ASEAN countries,
Namely Indonesia and Thailand, in 2005 – 2019. The analytical tools used
in this research are Panel Vector Error Correction Model (PVECM) and
Panel Ordinary Least Square (POLS). The estimation results show that the
macroeconomic variables that are proxied using inflation and openness
economy and institutional variables that are proxied using the variable
level of corruption and quality of regulation have a significant effect. The
inflation rate, the openness economy, and the quality of regulation
variables significantly affect foreign portfolio investment in the long term.
Meanwhile, in a short time, only the inflation rate variable and the
openness ratio have a significant effect on foreign portfolio investment.
The two analytical tools used found that macroeconomic and institutional
variables consistently affect foreign portfolio investment. | en_US |
