REVIEW JURNAL : Exchange Rate Movement and Foreign Direct Investment in Asean Economies

REKAP ISI JURNAL ILMIAH

UNTUK KAJIAN PENELITIAN YANG RELEVAN

NamaPengutip: Rinny Viany (B11111060)                    Hari/Tgl Pengarsipan: 6 November 2014

No	ASPEK JURNAL	SUBSTANSI/ ISI JURNAL DIKUTIP
1	Judul /title:	Exchange Rate Movement and Foreign Direct Investment in Asean Economies
2	Nama penulis :	Jaratin Lily, Mori Kogid, Dullah Mulok, Lim Thien Sang, a nd Rozilee Asid
3	Nama, edisi, halaman jurnal :	Hindawi Publishing Corporation Economics Research International Volume 2014, Article ID 320949, 10 pages
	Sumber/bentuk	http://dx.doi.org/10.1155/2014/320949
4	Setting  penelitian
	A. Tempat penelitian :	School of Business and Economics, Universiti Malaysia Sabah, Jalan UMS, 88400 Kota Kinabalu, Sabah, Malaysia
	B. Waktu penelitian :	-
	C.  Subyek penelitian :	the exchange rate movements and foreign direct investment (FDI) relationship using annual data on ASEAN economies, that is, Malaysia, the Philippines, hailand, and Singapore.
5	Kerangkapikir :
6	Metodologi penelitian
	A. Jenis/ pendekatan :	Quantitative study
	B. Metode sampling :	Purposive sampling
	C. Metode pengumpulan data	collected from World Development Indicators and Global Development Finance databases. FDI inlows consist of capital provided (either directly or through other related enterprises)by foreign direct investors to FDI enterprise or capital received by foreign direct investors from FDI enterprise [ 22 ]. here are only four of the ASEAN countries (Malaysia, the Philippines, Singa-pore, and hailand) that had a complete set of information for the period of 1971–2011
	D. Metode analisis data :	The causal relationship issue in this study is tested by using Error Correction Model based on ARDL (ECM-ARDL). Generally, in the case where y1 and x1 and are stationary variables I(0) ,( 6)and( 7) without the error correction term can be estimated using the least squares method in level form
7	Teori yang digunakan :	·      On the contrary, Stevens [28 ] study found weak empirical support and showed evidence of serious instability in the Froot and Stein [10 ] study hypothesis. he study indings showed that the significant relationship between the exchange rate and FDI inlows disappear for an important subperiod of the1973–1988 periods and when the sample series were extended through 1991. Using the data from 1976–1986 periods, Kogut and Chang [11 ] also concluded that the real appreciation of the Japanese yen lead to more entries of Japanese irms into the U.S. Blonigen [ 9]who reported that the real exchange rate between the Japanese yen and the US dollar had a positive relationship with the number of Japanese acquisitions (proxy for FDI) in the US, especially in the manufacturing industries with more irm-speciic assets, supporting Kogut and Chang’s [ 11 ] findings. ·      Baek and Okawa [ 29 ] found that a depreciation of the Asian currencies against the dollar significantly increases FDI in the export-oriented leading sectors such as chemical and electrical machinery sectors. Particularly, Japanese FDI in the electrical machinery is the most export-oriented sector whereover 70 percent of the total sales in this industry by the Japanese subsidiaries in Asia were for exports in 1997 and 1998.
8	Hasil/temuan penelitian :	·      Unit root test results using ADF, PP, and DF-GLS show that all variable series of all cases (Malaysia, the Philippines, hailand, and Singapore) produced mixed results but up to I(1) only. These results suggest that most of the variable series have diferent integration order. ·      Since the unit root tests indicated that most of the series variables have a diferent order of integration, more robust cointegration analysis is then tested using the ARDL bounds testing approach. he results showed that there are long-run co integration relationships between FDI and exchange rate in the case of Malaysia,thePhilippines,and Singapore,but none in Thailand. These proposed that both FDI and exchange rate for the said countries may tend to move together towards equilibrium. ·      Furthermore, the result also shows the existence of short-run unidirectional causality running from the exchange rate to the FDI in Sin-gapore. However, there is no evidence of short-run causality in the Philippines and Malaysia.
9	Diskusi :	·      This study has tested the long-run co integration relationship and the direction of the causal relations between FDI and exchange rate in Malaysia, the Philippines, Sin-gapore, and hailand. The empirical findings based on the ARDL bounds test suggest that there is evidence of long-run cointegration relationships between FDI and exchange rate for the case of Malaysia, Singapore, and the Philippines with all countries (except hailand) recording negative coeicient. As this study refers the foreign exchange rate as the number of home currency units per foreign currency, the negative relationship implies that the appreciation (a fall in the exchange rate indices) of the local currency has a positive impact on FDI inlows. ·      By using ECM based on the ARDL approach for causality test, both Singapore and the Philippines show long-run bid irectional causality between exchange rate and FDI. Furthermore, long-run unidirectional causality running from the exchange rate to FDI exists in Malaysia,while short-run unidirectional running from the exchange rate to FDI exists in Singapore
10	Saran  & rekomendasi
	A. Saran :	For future research, the study proposes the breakdown of the investment inlows in order to see the diferent efect of exchange rate on the economic sectors. Besides, since the investment decision making seems to be in the long-run, the study also proposes the inclusion of exchange rate movements via systematic exchange rate (monetary) policy to promote an attractive long-term FDI for a country in order to achieve sustainable economic development.
	B. Rekomendasi :