Foreign Direct Investment as Economic Globalization Indicators that Affect the International Trade in Europe

Abstract

This study aims to prove and examine the economic globalization indicators that affect international trade in Europe. This research uses data from countries in the European continent. The sample of countries consists of twenty (20) countries and this study uses the time series data method, which is for four (4) years, starting from 2014 to 2017. The method used in data collection is secondary data sourced from the European Statistics Recovery Dashboard. This study aims to analyze and prove the hypotesis that occurs in the Foreign Direct Investment (X₁), Research and Development (X₂), and Employment (X₃), on the International Trade (Y), which is tested empirically using the SmartPLS version 3.0. The result of the analysis show that the economic globalization indicators consist of Foreign Direct Investment, Research and Development, and Employment can affect International Trade.