DETERMINAN INVESTASI ASING DALAM MEMILIH LOKASI DAN POLARISASI INDUSTRI MANUFAKTUR DI PULAU JAWA

Abstract

This study explores key determinants of net foreign direct investment (FDI) inflows in the island of Jawa over the period of 1994 and 1999. The policy measures to attract FDI have brought different results across regions.This study aims to explore the elements of the development of labor market, agglomeration, path dependency, and infrastructure aspects that account for variations in terms of FDI inflows.This study also identified the location and clustering of FDI in Jawa. The findings indicate that FDI tended to locate in regions with large home markets, and to much lesser extend to regional availability of labor and infrastructure appears.

Keywords

• foreign direct investment (fdi), aglomerasi, infrastructure, market size