PERDAGANGAN INTERNASIONAL DAN FOREIGN DIRECT INVESTMENT DI INDONESIA

The objective of this study is to examine the effect of the flow of the international trade and foreign direct investment in Indonesia using a separate Regression analysis. The study found that there is a significant relation between export and FDI and between import and FDI. However, the effect of FDI on the export in the long run is positive while in the short run it was found negative and insignificant. Therefore, the Government needs to formulate policies to promote FDI at both national level as well as at the international level.