The Impact of Foreign Direct Investment (PMA), Domestic Investment (PMDN), and Remittances on Per Capita Income in Indonesia

Authors

  • Eka Agustiani Universitas Mataram
  • Vina Aprianti Universitas Mataram

DOI:

https://doi.org/10.58812/wsjee.v4i02.2870

Keywords:

Foreign Direct Investment (PMA), Domestic Investment (PMDN), Remittances, Per Capita Income, Panel Data Regression

Abstract

This study aims to analyze the effect of Foreign Direct Investment (FDI), Domestic Investment (DI), and remittances on per capita income in Indonesia. The study uses panel data from 34 provinces in Indonesia during the 2013–2023 period obtained from Statistics Indonesia (BPS), Bank Indonesia, and the Ministry of Investment/BKPM. The analytical method used is panel data regression with the assistance of EViews 10 software. Model selection was conducted through the Chow test, Hausman test, and Lagrange Multiplier (LM) test, resulting in the Common Effect Model (CEM) as the best model. The results indicate that partially, FDI, DI, and remittances do not have a significant effect on per capita income in Indonesia. Simultaneously, FDI, DI, and remittances also do not significantly affect per capita income. The adjusted R-square value of 0.44% indicates that variations in per capita income are largely influenced by other variables outside the research model. Therefore, the increase in per capita income in Indonesia is not only influenced by investment and remittances, but also by other factors such as human resource quality, infrastructure, and government expenditure.

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Published

2026-05-30

Issue

Vol. 4 No. 02 (2026): West Science Journal Economic and Entrepreneurship

Section

Articles

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Copyright (c) 2026 Eka Agustiani, Vina Aprianti

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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

How to Cite

The Impact of Foreign Direct Investment (PMA), Domestic Investment (PMDN), and Remittances on Per Capita Income in Indonesia (E. Agustiani & V. Aprianti, Trans.). (2026). West Science Journal Economic and Entrepreneurship, 4(02), 297-308. https://doi.org/10.58812/wsjee.v4i02.2870