ANALISIS ALIRAN MODAL DALAM KESEIMBANGAN PEREKONOMIAN INDONESIA
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The changing of capital flow is due to interaction between economic factors and non economic factors. The aim of this research is to analyse some factors that capital flow and their implications on Indonesian economy. Analyticalmethod used in this research is explanatory method is to test hypotesis about simultaneous relationship among variables that research by developing the characteristics of verificative research by doing some testing at every step of research. We used secondary data taken from BI, BPS, World Bank and IFS. We used error two stage least square (TSLS) to analysis between independent variable and dependent variable. The result of this research shows that ratio between domestic interest rate and exchange rate affect positive and significantly to capital flow. Meanwhile national income and dummy variable did not affected. The conclusion of this research suggestion that government have to organize rule of the game to make good condition of investment.