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The Multiplier Effect of Portfolio Investment on Economic Growth in Indonesia: A Case for the Manufacturing and Financial Sectors 2010–2020

Author

Listed:
  • Mars, Zhaditya Pradana Putra

    (Department of Economics and Development Studies, Faculty of Economics and Business, Universitas Diponegoro, Semarang)

  • Sugiyanto, FX

    (Department of Economics and Development Studies, Faculty of Economics and Business, Universitas Diponegoro, Semarang)

Abstract

This research aims to understand how the multiplier effect of portfolio investment affects economic growth in Indonesia. Using a panel Fixed Effects Model analysis with quarterly data ranging from 2010 to 2020, the findings suggest that the portfolio investment multiplier effect positively influences economic growth. However, its overall impact is lower than the estimation, and only the manufacturing sector has a meaningful impact on economic growth.

Suggested Citation

  • Mars, Zhaditya Pradana Putra & Sugiyanto, FX, 2024. "The Multiplier Effect of Portfolio Investment on Economic Growth in Indonesia: A Case for the Manufacturing and Financial Sectors 2010–2020," Diponegoro Journal of Economics (DJOE), Faculty of Economics and Business, Universitas Diponegoro, vol. 13(4), pages 69-80, December.
    • Handle: RePEc:ris:dipjoe:5479
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    References listed on IDEAS

    as
    1. Kunofiwa Tsaurai, 2017. "Is foreign Portfolio Equity Investment Inspired Growth Hypothesis Relevant in Emerging Markets?," EuroEconomica, Danubius University of Galati, issue 2(36), pages 78-90, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Portfolio Investment; Capital Market; Economic Growth; Keynesian;
    All these keywords.

    JEL classification:

    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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