The Effect of Macroeconomic Variables, Global Competition and Corruption on Private Investment in ASEAN +5 (Regional Comprehensive Economic Partnership)

ABSTRACT: This study aims to determine and analyze the effect of macroeconomic variables, global competition and corruption on private investment in ASEAN +5 (Regional Comprehensive Economic Partnership) countries. The population in this study is Malaysia, Thailand, Singapore, China, South Korea and Australia. The research data uses data from 2007-2017. The analysis technique used is the panel data analysis method using the E–Views11.The results of the study show that (1) Interest rates have a positive and significant effect on private investment in ASEAN +5 countries. (2) Inflation has a positive and significant effect on private investment in ASEAN +5 countries. (3) The appreciation of the exchange rate has a positive and insignificant effect on private investment in ASEAN +5 countries. (4) Improvement of corruption has a positive and significant impact on private investment in ASEAN +5 countries. (5) The decline in global competition ranking (competitiveness decreases) has a negative and insignificant effect on private investment in ASEAN +5 countries.

KEYWORDS :Panel Data, Macro Economics, Global Competition, Corruption, Private Investment