Fafurida Fafurida, Andrean Utomo, Haryo Kuncoro
This research aims at analysing the effect of Capital per Worker, Average of Schooling Length of Time, Corruption Perception Index, FDI Ratio in GFCF, and Trade Openness on the Incremental Capital-Output Ratio (ICOR) as a measure of investment efficiency in 8 ASEAN countries. This research uses a quantitative method with panel data consisting of 8 ASEAN countries, Philippines, Indonesia, Cambodia, Laos, Malaysia, Myanmar, Thailand, and Vietnam, and it was conducted in the 2010-2019 period. The results of research found that Capital per Worker, Corruption Perception Index, FDI Ratio in GFCF, and Trade Openness have a significant effect on ICOR in 8 ASEAN Countries. While Average of Schooling Length of Time has no significant effect on ICOR in 8 ASEAN Countries. Suggestions in this research to create investment efficiency in 8 ASEAN countries are to maintain and select the growth of Capital per Worker by recognising that increasing investment in the capital-intensive sector is a vital sector with a large spillover effect on the economy, increasing the quantity and quality of education, eradicating corruption, increasing FDI flows by increasing the country's competitiveness through creating a conducive business climate and providing various monetary and fiscal incentives, lowering export trade barriers, and trying to limit and substitute consumptive and high-dependence imported products by developing and producing them domestically. © 2023, Bucharest University of Economic Studies. All rights reserved.
Universitas Negeri Semarang, Indonesia; Universitas Negeri Jakarta, Indonesia
