T1 - The impact of FDI on energy intensity Thus, FDI is still directed mainly to energy-intensive sectors, such as manufacturing and transportation.', This result might be a consequence of inconsistent policies between promoting FDI and reducing energy intensity. The results demonstrated that FDI inflows positively and significantly impacted energy intensity in host regions and neighboring provinces. The spatial Durbin model was employed to determine the direct effect of FDI on host provinces and the spillover effect on neighboring regions. Based on Morans I test, the regression revealed a significant spatial autocorrelation. Hence, this study investigates the impact of FDI on energy intensity in 33 Indonesian provinces from 2008 to 2015. Previous studies have demonstrated both positive and negative relationships between FDI inflows and energy intensity. Thus, FDI is still directed mainly to energy-intensive sectors, such as manufacturing and transportation.Ībstract = 'The government of Indonesia (GoI) is committed to reducing its carbon emissions through a decline in its energy intensity while encouraging foreign direct investment (FDI) inflows to boost economic growth.

Based on Moran’s I test, the regression revealed a significant spatial autocorrelation. The government of Indonesia (GoI) is committed to reducing its carbon emissions through a decline in its energy intensity while encouraging foreign direct investment (FDI) inflows to boost economic growth.

Energy intensity