Jurnal Ekonomi Pembangunan

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

Toni Prihandoko — 2026-08-10

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

Kalzum R. Jumiyanti — 2026-08-12

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.

Beyond Macroeconomic Stability Dynamic Determinant of Foreign Direct Investment in ASEAN

Kayla Asyifa — 2026-09-09

This study aims to analyze the determinants of Foreign Direct Investment (FDI) in ASEAN countries during the period 2005–2024. This study is motivated by the important role of FDI as a source of development financing, technology transfer, and regional integration in the global value chain. Different from previous research that tended to be partial, this study integrates macroeconomic, financial, human resources, and economic globalization factors in one empirical framework. The methods used are static panel data through Fixed Effect Model (FEM) and Random Effect Model (REM), as well as dynamic panel data using the Generalized Method of Moments (GMM) to capture investment persistence and address potential endogeneity. The results show that economic growth, exports, and labor productivity have a positive effect on FDI. The FDI lag variable is significant across all dynamic models, indicating the persistence of foreign investment in ASEAN. In contrast, inflation, exchange rates, and interest rates show inconsistent influences. These findings confirm that macroeconomic stability remains important, but it is no longer enough to be a major factor in attracting investment. The quality of the workforce, production capacity, and integration in global production networks increasingly determine the attractiveness of FDI in ASEAN.