PENERAPAN TSLS DALAM PERSAMAAN SIMULTAN ANTARA VARIABEL MAKROEKONOMI DAN INVESTASI PORTOFOLIO DI INDONESIA

Lia Nazliana Nasution; Dewi Mahrani Rangkuty;

Abstract

Macroeconomic variables play an essential role in determining portfolio investment inflows in a country. If one macroeconomic variable changes, investors will react positively or negatively depending on whether the changes in the macroeconomic variables are positive or negative in the eyes of investors. The objective of this study analyzes the effect of macroeconomic variables on portfolio investment in Indonesia. Suspected economic variables are influential, namely the exchange rate Rupiah against USD (ER), interest rate (IR), inflation, and economic growth (growth) sourced from the World Bank. With a 30-year observation period from 1989 to 2018, and the method used simultaneous regression analysis, the findings show that ER, IR, and growth have a positive effect on demand for portfolio investment in Indonesia while inflation and portfolio investment has a significant negative impact on growth.