IJRR

International Journal of Research and Review

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Research Paper

Year: 2022 | Month: November | Volume: 9 | Issue: 11 | Pages: 518-530

DOI: https://doi.org/10.52403/ijrr.20221168

Optimization of Monetary Policy Transmission Through Credit Channels to Foreign Direct Investment

Wahyu Indah Sari1, Ade Novalina2, Annisa Sanny3

1,2Department of Development Economics,3Department of Management University of Pembangunan Panca Budi, Medan of North Sumatra, Indonesia

Corresponding Author: Ade Novalina

ABSTRACT

This study aims to analyze the variable Amount of Money in Supply, Exchange Rate, Interest Rate, Credit, Exports and Tax on Foreign Direct Investment (FDI). This study uses secondary data or time series data for the period 2009-2020. The data analysis model used is ARDL Panel Regression. The results of the ARDL panel data analysis show that the Money Supply, Exchange Rate and Interest Rates can be the leading indicators of Foreign Direct Investment (FDI) in the Five Southeast Asian Countries of Emerging Markets in the short term seen from the short run. So that it can be concluded that a monetary policy transmission that can be recommended is through the management of Foreign Direct Investment and the Money Supply, Exchange Rate and Interest Rate which is much better.

Keywords: Monetary Policy, Credit, Foreign Direct Investment

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