In contrast, the results of PVECM tests in the short term do not have any macroeconomic variables or institutions that significantly affect foreign portfolio investment. Important findings in this study that corruption consistently negatively and significantly affects foreign portfolio investments are based on both GMM test results and PVECM tests in the long term. The study found that macroeconomic instruments projected with GDP variables had a positive and significant influence on foreign portfolio investments, while exchange rate variables negatively affected foreign portfolio investments. The analysis method used in this study uses two methods at once, namely the Generalized Method of Moment (GMM) and the Panel Vector Error Correction Model (PVECM), to analyze the cost of the analysis results.

The data used in this study is a data panel with a period from 2002-2019. The study analyzed the influence of macroeconomic variables and proxied institutions with corruption variables and government regulations on foreign portfolio investment fluctuations in the twenty Asian and EU countries with the largest funds flows. The investment that is one form of implementation of economic integration positively influences a country's capital reserves. Zainuri Economic integration in various countries impacts fluctuations in and out of capital and multiple economic cooperation between countries. Investment and economic integration as tangible evidence of the implementation of financial liberalization and economic globalization in various countries, investment in the private sector becomes a hot topic of discussion among economists regarding the impact of its implementation and its effect on the economy and capital reserves (Waqas, Hashmi, & Nazir, 2015).

Investment and economic integration as tangible evidence of the implementation of financial liberalization and economic globalization in various countries, investment in the private sector becomes a hot topic of discussion among economists regarding the impact of its implementation and its effect on the economy and capital reserves (Casagrande & Cerezetti, 2014 Laopodis, 2020). Financial liberalization and economic globalization have erased all economic sector boundaries between countries and positively influenced economic activity and capital turnover through capital market openness (Bhanumurthy & Kumawat, 2020 Matyushok, Krasavina, Berezin, & GarcГa, 2020).

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