Foreign Direct Investment and Labour Market Development in Indonesia since the Turn of the New Century
| Autor: | Wei-Yuan Chen, 陳煒元 |
|---|---|
| Rok vydání: | 2015 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 103 By the 1970, Indonesia was still under-developed because the lack of fund to manage natural resources and to promote industrial upgrading. Indonesia’s economic development was slow as the country was closed during the period of militarism in early days. The domestic poverty rate was as high as 40 percent in the 1970s. To seek for better development, Indonesia needed to attract foreign direct investment to ease the shortage of domestic capital. Consequently, Indonesia’s attitude and policy had gradually changed, hoping that foreign direct investment can promote economic development and the labour market. Indonesia has a big population and the age structure of her labour force is favourable for economic development. However, the country has to create enough employment opportunities to gain the biggest benefits. Otherwise, the population will be a heavy burden on the economy. Therefore, the most important policy for Indonesia is to attract FDI in the new century. Based on the understanding, this thesis aims to investigate the relationship between inward FDI and the labour market development in Indonesia. In May 2011, Indonesia launched the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development, 2011-2015 or the MP3EI Plan. It was aimed to attract foreign capital and technology to stimulate industrial transformation in the six economic corridors of the country. The FDI inflows would be mainly to the secondary industry, and then to the tertiary industry. The expansion of the industrial sector and the service sector will naturally benefit the population though the creation of more employment opportunities and the rise of wage level. As a result, this study concludes that FDI had played a positive role in promoting the industrial changes and the labour market development in Indonesia. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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