Hubungan Kausalitas Antara FDI dan Neraca Transaksi Berjalan di Indonesia Periode 2000.I-2013.IV

Abstract

Current account deficit is a macroeconomic problem often faced in Indonesia as a developing country. This study review the relationship between foreign direct investment (FDI) and the current account. Considering the assumptions used in this study that FDI will affect on exports if FDI can become exportoriented, while if the inputs used in FDI need import then that both sides will affect the current account. This study aimed to analyze the causal relationship between FDI and current account; and two components of international trade, FDI and export-import. Method that used were unit roots test, cointegration test and Granger causality test. The results of the unit root test showed are several variables have been stationary at first difference then all variables stationary in the 2nd difference. Cointegration test results indicate a long-term relationship between variables which then continued on causality test. Found one-way relationship between FDI and current account, while the component of international trade (exports and imports), which is an element of the current account has a two-way relationship.