ANALYSIS OF GOVERNMENT STRATEGY ON ATTRACTING FOREIGN DIRECT NVESTMENT (FDI) AND AGGLOMERATION ECONOMIES LEVERAGE TOWARD INVESTMENT AND ECONOMIC GROWTH IN SPECIAL REGION OF YOGYAKARTA

The existences of Foreign Direct Investment (FDI) would help region in running its ?velopment project. In addition, Agglomeration economies is unevitable situation that fluenced, amongst others, by the investment flows. Theoretically, foreign investors are likely invest in regions where competitiveness indicators such as human resource capability, !source endowment, market opportunities and per capita incomes are high. Factually, the reign investors are also likely to invest in areas where there business infrastructures, !onornk facilities and market segments are available. This research used the descriptive-talitative research method. The data classification is the primary and secondary data. 4rtherrnore, data collection technics conducted through interview and documentation, Filch collected from the related officer or staffs in charge with the investment marketing and ►velopment,The majority of FDI in Sleman Regency are in the secondary and tertiary ctors with domination of Hotel, Trade and Restaurants sub-sector. Meanwhile, the majority the FDI in Kulonprogo Regency is in the primary and secondary sectors with the )mination on agriculture and processing industry sub-sectors. Rased on the spatial-view, DI in Sleman is mainly located in Depok Kalasan, and Garnping Districts. Those all stricts are includedin the agglomeration area (APY) of DIY. FDI in Kulonprogo Regency is ainly located in Wales District.Both regency needs to improve the economic, social, tltural capabilities and wrapping all these points into complete packaging, hence, the better e packaging presented, the higher FDI attracted.
?ywords.- Investment, Attract FDI, Agglomeration Economies, and Economic Growth
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