Decision Making Modelling in Foreign Direct Investment with The Least Square Method

DOI

10.2991/978-94-6463-882-0_47How to use a DOI?

Keywords

Decision Making; Foreign Direct Investment; Least Square Method

Abstract

The foreign direct investment shows development from year to year. Some economists consider the value of foreign direct investment as a potential investment opportunity to spur a country’s economic growth. The importance of knowledge in making long-term investment decisions necessitates conducting a foreign direct investment decision modelling with mean values, median values, and standard deviations. This study was conducted to analyze foreign direct investment decisions about the possibility of long-term impact probability values. This study uses a quantitative approach, and research data in the form of time series data from 2018 to 2024. The data analysis method employs the Least Squares Method using the EViews 13 program. The results of the study indicate that foreign direct investment decisions can be made by estimating probability values, calculating the mean value of direct investment, median values, and standard deviation values. The study’s results also indicate that FDI opportunity values are higher than the median value and have a lower standard deviation, suggesting that FDI decisions can have a more significant long-term impact. Then, FDI decision modelling using the Least Square method yields very accurate results. The recommendation of this research result for future researchers is to focus on studies that compile and evaluate feasible FDI in the economic sector, examining its impact on community prosperity. This will help prove that FDI is indeed a real driver of a country’s economic growth.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Ni Nyoman Aryaningsih
AU  - Putu Rany Wedasuari
AU  - Wayan Eny Mariani
PY  - 2025
DA  - 2025/11/14
TI  - Decision Making Modelling in Foreign Direct Investment with The Least Square Method
BT  - Proceedings of the International Conference on Sustainable Green Tourism Applied Science - Social Applied Science 2025 (ICOSTAS-SAS 2025)
PB  - Atlantis Press
SP  - 411
EP  - 419
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-94-6463-882-0_47
DO  - 10.2991/978-94-6463-882-0_47
ID  - Aryaningsih2025
ER  -