Sustainable Development Impacts of Investment Incentives: A Case ...

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Table 23. Error correction model estimation
Dependent Variable: D((FDI_RP/IHK)*100)/1000
Method: Least Squares
Date: 09/24/08 Time: 18:09
Sample(adjusted): 1990:2 2006:4
Included observations: 67 after adjusting endpoints
Variable Coefficient Std. Error t-Statistic Prob.
DLOG((GDP/IHK)*100) -20.90770 29.60872 -0.706133 0.4828
D(ISBI-INF) 0.209336 0.464595 0.450576 0.6539
D(LIBOR-INFF) 6.688684 2.890285 2.314195 0.0240
DLOG(RER) 10.34278 17.11135 0.604440 0.5478
INCTV 0.275621 2.418954 0.113942 0.9097
ECT1_RERSBI(-1) -0.499739 0.116546 -4.287904 0.0001
R-squared 0.340917 Mean dependent var 0.582723
Adjusted R-squared 0.286894 S.D. dependent var 20.32557
S.E. of regression 17.16406 Akaike info criterion 8.608798
Sum squared resid 17970.90 Schwarz criterion 8.806233
Log likelihood -282.3947 F-statistic 6.310563
Durbin-Watson stat 2.004196 Prob (F-statistic) 0.000088
Source : analyzed data
Table 24. Co-integration equation extimation
Dependent Variable: ((FDI_RP/IHK)*100)/1000
Method: Least Squares
Date: 09/24/08 Time: 18:06
Sample: 1990:1 2006:4
Included observations: 68
Variable Coefficient Std. Error t-Statistic Prob.
C -136.5213 159.3013 -0.857001 0.3947
LOG((GDP/IHK)*100) 33.88370 15.39631 2.200768 0.0315
ISBI-INF -0.591608 0.392238 -1.508289 0.1366
LIBOR-INFF 1.528785 1.609615 0.949783 0.3459
LOG(RER) -31.22415 10.03551 -3.111366 0.0028
INCTV -14.97050 9.913553 -1.510104 0.1361
R-squared 0.179938 Mean dependent var -0.417996
Adjusted R-squared 0.113804 S.D. dependent var 21.55949
S.E. of regression 20.29566 Akaike info criterion 8.942789
Sum squared resid 5538.67 Schwarz criterion 9.138628
Log likelihood -298.0548 F-statistic 2.720810
Durbin-Watson stat 1.326011 Prob (F-statistic) 0.027548
Source : analyzed data
Sustainable Development Impacts of Investment Incentives: A Case Study of the Chemical Industry in Indonesia
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