How the American dollar exchange effect on foreign direct investment and trade balance?
A case in Indonesia during 2000-2019
Keywords:
foreign direct investment, trade balance, US Dollar exchange rateAbstract
This study aims to determine the direct and indirect effects between the variables that are the object of research, namely the US Dollar exchange rate, foreign direct investment, and the trade balance in Indonesia. The data used is secondary data for the period 2000-2019. The data analysis technique used is path analysis with the help of the SPSS 27.00 program. Based on the results of the analysis of the variable US dollar exchange rate which has a negative effect on foreign direct investment, the US dollar exchange rate has a positive effect on the trade balance and foreign direct investment does not affect the trade balance. The US Dollar exchange rate has no indirect effect on the trade balance through foreign direct investment in Indonesia from 2000-2019.
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