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The Effect of Foreign Direct Investment and Road Infrastructure on Labor Absorption

Efficient: Indonesian Journal of Development Economics · Vol. 5 No. 3 (2022) · pp. 332–342

DOI
10.15294/efficient.v5i3.54393
ISSN
2655-318X, 2655-6197
Published
2022-12-17
Publisher
Universitas Negeri Semarang
Language
eng

Abstract

This study aims to determine the effect of direct investment and infrastructure on employment through the manufacturing sector in Central Java in 1990-2020. The data analysis method used is the Path Analysis Method. The results showed that direct foreign investment had a positive and insignificant effect on the industrial manufacturing sector and road infrastructure had a positive and significant effect on the industrial manufacturing sector. Direct investment has a negative and insignificant effect on employment. Road infrastructure has a direct positive and significant effect on employment. Direct investment and road infrastructure have an indirect positive effect on employment through the manufacturing sector. Foreign direct investment and road infrastructure in total have a positive effect on employment through the manufacturing sector. The government is expected to be able to lead PMA into the manufacturing sector or the capital-intensive sector and always pay attention to road conditions. Penelitian ini bertujuan untuk mengetahui pengaruh investasi asing langsung dan infrastruktur jalan terhadap penyerapan tenaga kerja melalui sektor industri pengolahan di Jawa Tengah tahun 1990-2020. Metode analisis data yang digunakan adalah metode Analisis Jalur (Path Analysis Method). Hasil penelitian menunjukkan bahwa secara langsung investasi asing langsung berpengaruh positif dan tidak signifikan terhadap sektor industri pengolahan dan infrastruktur jalan berpengaruh positif dan signifikan terhadap sektor industri pengolahan. Investasi asing langsung secara langsung berpengaruh negatif dan tidak signifikan terhadap penyerapan tenaga kerja. Infrastruktur jalan secara langsung berpengaruh positif dan signifikan terhadap penyerapan tenaga kerja. Investasi asing langsung dan infrastruktur jalan secara tidak langsung berpengaruh positif terhadap penyerapan tenaga kerja melalui sektor industri pengolahan. Investasi asing langsung dan infrastruktur jalan secara total berpengaruh positif terhadap penyerapan tenaga kerja melalui sektor industri pengolahan. Pemerintah diharapkan dapat menggiring PMA yang masuk ke sektor industri pengolahan ataupun sektor padat modal dan selalu memperhatikan kondisi jalan.

Collaboration network of the authors

35 authors · 82 co-authorship links

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  • State University of Semarang
  • Universitas 17 Agustus 1945 Surabaya
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Dwi RahmayaniAffiliation unknown2
Avi Budi SetiawanAffiliation unknown2
Ita NuryanaAffiliation unknown1
Rana Sharjeel AkhtarAffiliation unknown1
Muh. Adrikni Al HakimAffiliation unknown1
Lutfiani Puspita DewiAffiliation unknown1
Indung WijayantoState University of Semarang1
Cahya WulandariState University of Semarang1
Sarah Rinda SulistyoningrumAffiliation unknown1
Agus HermantoUniversitas 17 Agustus 1945 Surabaya1
Afif Dhia PratamaAffiliation unknown1
Fredericho Mego SundoroAffiliation unknown1
Eka RochaningrumAffiliation unknown1
Kurniasih KurniasihAffiliation unknown1
Shella Monica FatimahtuzzahraAffiliation unknown1
Anik SusantiAffiliation unknown1
Gilang Fajar KurniawanAffiliation unknown1
Rini DiastutiAffiliation unknown1
Destin Witari TazaruwahAffiliation unknown1
Wiwiet Septiani RahayuAffiliation unknown1
Putri Suri KinasihAffiliation unknown1
Havidz Aldi SetiawanAffiliation unknown1
Andryan SetyadharmaAffiliation unknown1
P. Eko PrasetyoAffiliation unknown1
Grace Natalia MarpaungAffiliation unknown1
Nurjannah Rahayu KistantiAffiliation unknown1
Bambang SetiajiAffiliation unknown1
Savira Ariesta Putri AndikeAffiliation unknown1
Riska JulianiAffiliation unknown1
Shanty OktaviliaAffiliation unknown1
Murwatiningsih MurwatiningsihAffiliation unknown1
Karsinah KarsinahAffiliation unknown1
Phany Ineke PutriAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/sju/index.php/efficient/oai, first harvested 5 Nov 2026, last seen 8 Nov 2026.
Original metadata (oai_dc)
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	<dc:title xml:lang="en-US">The Effect of Foreign Direct Investment and Road Infrastructure on Labor Absorption</dc:title>
	<dc:creator>Azizah, Novi Nur</dc:creator>
	<dc:creator>Nihayah, Dyah Maya</dc:creator>
	<dc:description xml:lang="en-US">This study aims to determine the effect of direct investment and infrastructure on employment through the manufacturing sector in Central Java in 1990-2020. The data analysis method used is the Path Analysis Method. The results showed that direct foreign investment had a positive and insignificant effect on the industrial manufacturing sector and road infrastructure had a positive and significant effect on the industrial manufacturing sector. Direct investment has a negative and insignificant effect on employment. Road infrastructure has a direct positive and significant effect on employment. Direct investment and road infrastructure have an indirect positive effect on employment through the manufacturing sector. Foreign direct investment and road infrastructure in total have a positive effect on employment through the manufacturing sector. The government is expected to be able to lead PMA into the manufacturing sector or the capital-intensive sector and always pay attention to road conditions.
Penelitian ini bertujuan untuk mengetahui pengaruh investasi asing langsung dan infrastruktur jalan terhadap penyerapan tenaga kerja melalui sektor industri pengolahan di Jawa Tengah tahun 1990-2020. Metode analisis data yang digunakan adalah metode Analisis Jalur (Path Analysis Method). Hasil penelitian menunjukkan bahwa secara langsung investasi asing langsung berpengaruh positif dan tidak signifikan terhadap sektor industri pengolahan dan infrastruktur jalan berpengaruh positif dan signifikan terhadap sektor industri pengolahan. Investasi asing langsung secara langsung berpengaruh negatif dan tidak signifikan terhadap penyerapan tenaga kerja. Infrastruktur jalan secara langsung berpengaruh positif dan signifikan terhadap penyerapan tenaga kerja. Investasi asing langsung dan infrastruktur jalan secara tidak langsung berpengaruh positif terhadap penyerapan tenaga kerja melalui sektor industri pengolahan. Investasi asing langsung dan infrastruktur jalan secara total berpengaruh positif terhadap penyerapan tenaga kerja melalui sektor industri pengolahan. Pemerintah diharapkan dapat menggiring PMA yang masuk ke sektor industri pengolahan ataupun sektor padat modal dan selalu memperhatikan kondisi jalan.</dc:description>
	<dc:publisher xml:lang="en-US">Universitas Negeri Semarang</dc:publisher>
	<dc:date>2022-12-17</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en-US">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.unnes.ac.id/sju/efficient/article/view/54393</dc:identifier>
	<dc:identifier>10.15294/efficient.v5i3.54393</dc:identifier>
	<dc:source xml:lang="en-US">Efficient: Indonesian Journal of Development Economics; Vol 5 No 3 (2022); 332-342</dc:source>
	<dc:source>2655-318X</dc:source>
	<dc:source>2655-6197</dc:source>
	<dc:source>10.15294/efficient.v5i3</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.unnes.ac.id/sju/efficient/article/view/54393/23595</dc:relation>
	<dc:rights xml:lang="en-US">Copyright (c) 2022 Efficient: Indonesian Journal of Development Economics</dc:rights>
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