The Role of Digital Marketing in Encouraging Foreign Direct Investment, Economic Growth and Domestic Consumption in Indonesia

Abstract

This study investigates internet users, FDI, consumption, and GDP in Indonesia to understand the relationship between digital marketing and direct investment in Indonesia and the control variables for consumption and economic growth.The World Bank has provided this data as a secondary source. For the years 2000 to 2020, the following variables will be analyzed using two different time series models. The country's GDP is used as a measure of economic growth in this study. Internet users (IU) is the dependent variable, and the other three variables, namely foreign direct investment (FDI), consumption (CO), and GDP, each of which is an independent variable from this study because they function as indicators of how the three variables are related in the long term and short for internet users. We found that internet users as an indicator of information technology literacy as well as an indicator of digital marketing in Indonesia have an impact on foreign direct investment, consumption, and GDP. This shows that digital marketing supports economic growth and domestic consumption and attracts investors to make direct investments in Indonesia.