Pengaruh Foreign Direct Investment, Trade Openness, Dan Angkatan Kerja Terhadap Kesempatan Kerja DI Asean-7

Abstract

This study aims to examine the effect of Foreign Direct Investment (FDI), trade openness, and the labor force on the employment rate in the ASEAN-7 countries. This study employed a quantitative approach using panel data from seven ASEAN countries, namely Cambodia, Indonesia, Malaysia, the Philippines, Thailand, Timor-Leste, and Vietnam, covering the period from 2015 to 2024. The data were obtained from the World Bank and analyzed using the Fixed Effect Model (FEM). The results indicate that, simultaneously, all independent variables have a significant effect on the employment rate in the ASEAN-7 countries. Partially, Foreign Direct Investment (FDI) has a positive but insignificant effect on the employment rate, indicating that foreign investment has not significantly increased employment opportunities. Trade openness has a negative and significant effect on the employment rate, suggesting that greater trade openness tends to reduce employment opportunities in the ASEAN-7 countries. Meanwhile, the labor force has a positive and significant effect on the employment rate, indicating that an increase in the labor force contributes to higher employment opportunities when supported by the economy's capacity to absorb workers.