Demokrasi Parlemen Wanita Terhadap FDI Di Indonesia
Abstract
This research is motivated by the importance of Foreign Direct Investment (FDI) as a source of development financing and a driver of regional economic growth in Indonesia, as well as the ongoing debate regarding the influence of political and economic factors on foreign investment flows. This study aims to analyze the influence of democracy, women's representation in politics, and economic factors on Foreign Direct Investment (FDI) in Indonesia. The independent variables used include the democracy index, women's leadership, women's representation in parliament, Gross Regional Domestic Product (GRDP) in the mining sector, the open unemployment rate, and the provincial minimum wage. This study uses a quantitative approach with panel data and the Random Effect Model (REM) estimation method as the best model based on the model selection test. The results show that the variables of democracy, women's leadership, and women's representation do not have a significant effect on FDI. In contrast, economic variables have a stronger influence. GRDP in the mining sector and the provincial minimum wage have a positive and significant effect on FDI, while the open unemployment rate has a negative and significant effect. Simultaneously, all variables in the model have a significant effect on FDI, although the coefficient of determination indicates that there are still other factors outside the model that influence foreign investment. This finding confirms that the stability and strength of economic fundamentals are more important considerations for investors than political representation in attracting foreign investment flows.
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DOI: https://doi.org/10.30596/ekonomikawan.v26i1.30554