Economic Fundamentals vs. Institutional Quality: Determinants of FDI Inflows in the Developing (D-6) Countries

2026-08-10T05:49:12+00:00

This study investigates the macroeconomic and institutional determinants of Foreign Direct Investment (FDI) inflows within the Developing Six (D-6) countries, which consist of Indonesia, Malaysia, Pakistan, Turkey, Bangladesh, and Egypt. Utilizing a quantitative approach with secondary panel data spanning from 2012 to 2021, the research employs the Random Effect Model (REM) as the optimal estimation framework. The empirical findings reveal that fundamental economic variables, specifically the Exchange Rate and Gross Domestic Product (GDP), exert a positive and statistically significant influence on stimulating foreign capital inflows (ρ < 0.05). Regarding institutional quality, while political stability shows no significant impact (ρ > 0.05), the control of corruption is found to have a significant negative effect on FDI (ρ < 0.05). This suggests that in the D-6 context, higher levels of corruption control (higher scores) may paradoxically correlate with reduced FDI, or that investors prioritize market size and currency advantages over certain governance metrics. The study concludes that investor behavior in these nations is primarily driven by market-seeking motives, with economic fundamentals serving as the most dominant catalysts..

The Paradox of Fintech and Gen Z Consumption in Sustainable Development: Implications for Community Development Planning in Gorontalo Province

2026-08-12T06:46:48+00:00

Fintech transformation in Gorontalo accelerates Gen Z transactions, but raises a paradox between ease of consumption and sustainability demands; This study aims to map strengths, weaknesses, opportunities, threats and formulate WT interventions for community development planning. Exploratory qualitative research involved 67 Gen Z students (18–27 years old) who are financially autonomous and regular users of e-wallets, paylater, or digital investments; Data were collected through focus group discussions and semi-structured face-to-face interviews and analyzed with SWOT thematization. The results show that the main strengths of fintech are understood to be transaction efficiency and withdrawal monitoring, while the dominant weaknesses are frictionless spending, promotional impulsivity, and the illusion of paylater's affordability. Interpretation shows that self-control is strengthened when the monitoring feature is consciously activated. Gen Z considers the biggest opportunities to be in budget control features, microlearning, and impact feedback, but feel the threat in the form of consumptive debt, FOMO, e-commerce overconsumption, and consumer protection risks. Research emphasizes that fintech can be a behavioral infrastructure for sustainable development if supported by choice design (limits, transaction breaks, notifications) and literacy-protection governance; Further studies are suggested to test the effectiveness of WT packages on regional programs and measure changes in consumption behavior over time.

Jurnal Ekonomi Pembangunan

Economic Fundamentals vs. Institutional Quality: Determinants of FDI Inflows in the Developing (D-6) Countries

The Paradox of Fintech and Gen Z Consumption in Sustainable Development: Implications for Community Development Planning in Gorontalo Province