EFFECTS OF TECHNOLOGY ABSORPTION AND GOVERNMENT PRIORITIZATION OF ICT ON FOREIGN DIRECT INVESTMENT

Abstract

Nowadays, ICT has become the fundamental pillar of the knowledge economy. Government have a big proportion to support technology activities by having high priority and concerned. In order to increase economic growth, government can push the business sector to publish the reporting order to attract the investor.The research has taken population from all the countries around the world therefore using purposive sampling technique and only 111 countries that meet the criteria as a sample. The research using secondary data which are Network Readiness Index from World Economic Forum (WEF) and Foreign Direct Invesment (FDI) inflows from UNCTAD. The analysis methods in this research are path analysis for testing the hypothesis, descriptive analysis, classical assumption test and good of fitness test for testing the quality of data using AMOS 6 software. Result of this research found that firm-level of technology absorption affects to FDI directly but government prioritization of ICT directly not affects to FDI.

Keywords: ICT, Investment, FDI, Technology