The Effect of Investment, Labor Force Participation, and Tourism on Unemployment In 5 ASEAN Countries

Abstract

This study aims to determine the long-term and short-term effects of foreign direct investment, labor force participation, and tourist visits on unemployment in five ASEAN countries. The research design employed is descriptive quantitative. The study utilizes panel data spanning the period from 1993 to 2022. The research subjects are the ASEAN-5 countries, comprising Indonesia, Malaysia, Thailand, the Philippines, and Vietnam. Data analysis in this study employs the Panel ARDL method, with testing conducted using Eviews 12. The results of the study indicate that the variable of foreign direct investment has a negative and significant effect on the unemployment rate in the long term, while in the short term it has a positive and significant effect on the unemployment rate. The variable of labor force participation has a positive and insignificant effect on the unemployment rate in the long term, while in the short term it has a negative and significant effect on the unemployment rate. The tourist visit variable has a significant effect on the unemployment rate, namely a positive effect in the short term and a negative effect in the long term.