PENGARUH PENANAMAN MODAL ASING TERHADAP NERACA PERDAGANGAN ASEAN-6

This study sets out to explain the development of trade between ASEAN-6 countries and analyze the influence of FDI flow towards the balance of trade. This study utilizes descriptive analysis approach and panel data regression. This study shows the development of the balance of trade for ASEAN-6 trade from 2004-2013 were all surplus. Based on the panel data regression analysis, there is a positive influences of FDI, GDP, and manufacture sector on the balance of trade of ASEAN-6 countries. On the other hand, there is a negative influences of domestic consumption and real exchange on balance of trade. The analysis result from panel data regression indicates the importance of FDI growth variable. This implies a necessity for ASEAN-6 countries to issue policies that could enhance the inflow of FDI, such as improving investment climate and providing fiscal incentive.