IDEAS home Printed from https://ideas.repec.org/a/bla/asiapr/v10y2015i1p124-147.html
   My bibliography  Save this article

Escaping the Middle-Income Trap in Southeast Asia: Micro Evidence on Innovation, Productivity, and Globalization

Author

Listed:
  • Cassey Lee
  • Dionisius Narjoko

Abstract

type="main"> Microdata studies on innovation, productivity, and globalization are relatively new to the Southeast Asian region. Evidence from microdata studies in middle-income countries provide valuable evidence for policymaking aimed at graduating these countries to high-income status. Globalization via trade and foreign direct investment should continue to be important development strategies. A more nuanced approach focusing on exporters and potential exporters, especially SMEs, are likely to be needed. The extent of foreign participation is also likely to have important implications for technological spillovers.

Suggested Citation

  • Cassey Lee & Dionisius Narjoko, 2015. "Escaping the Middle-Income Trap in Southeast Asia: Micro Evidence on Innovation, Productivity, and Globalization," Asian Economic Policy Review, Japan Center for Economic Research, vol. 10(1), pages 124-147, January.
    • Handle: RePEc:bla:asiapr:v:10:y:2015:i:1:p:124-147
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1111/aepr.12090
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ganeshan Wignaraja, 2012. "Engaging Small and Medium Enterprises in Production Networks : Firm-level Analysis of Five ASEAN Economies," Trade Working Papers 23316, East Asian Bureau of Economic Research.
    2. Nguyen, Anh Ngoc & Nguyen, Thang & Le, Dang Trung & Pham, Quang Ngoc & Nguyen, Dinh Chuc & Nguyen, Duc Nhat, 2008. "Foreign direct investment in Vietnam: Is there any evidence of technological spillover effects," MPRA Paper 7273, University Library of Munich, Germany.
    3. Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie Mathématique et Applications 98.15, Université Panthéon-Sorbonne (Paris 1).
    4. Alireza Naghavi & Gianmarco Ottaviano, 2009. "Offshoring and product innovation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 38(3), pages 517-532, March.
    5. Stephen J. Redding, 2011. "Theories of Heterogeneous Firms and Trade," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 77-105, September.
    6. Fukunari Kimura & Ayako Obashi, 2016. "Production Networks in East Asia: What We Know So Far," ADB Institute Series on Development Economics, in: Ganeshan Wignaraja (ed.), Production Networks and Enterprises in East Asia, edition 1, chapter 0, pages 33-64, Springer.
    7. Bee Yan Aw & Mark J. Roberts & Tor Winston, 2007. "Export Market Participation, Investments in R&D and Worker Training, and the Evolution of Firm Productivity," The World Economy, Wiley Blackwell, vol. 30(1), pages 83-104, January.
    8. Lee, Cassey, 2004. "The Determinants of Innovation in the Malaysian Manufacturing Sector: An Econometric Analysis at the Firm Level," Centre on Regulation and Competition (CRC) Working papers 30670, University of Manchester, Institute for Development Policy and Management (IDPM).
    9. Archanun KOHPAIBOON, 2009. "Vertical and Horizontal FDI Technology Spillovers: Evidence from Thai Manufacturing," Working Papers d011, Economic Research Institute for ASEAN and East Asia (ERIA).
    10. Joachim Wagner, 2016. "Exports and Productivity: A Survey of the Evidence from Firm Level Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 1, pages 3-41, World Scientific Publishing Co. Pte. Ltd..
    11. Tomohiro Machikita & Yasushi Ueki, 2011. "Innovation in Linked and Non-linked Firms: Effects of Variety of Linkages in East Asia," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 3(1), pages 77-102, April.
    12. Cassey Lee & Lee Chew ging, 2007. "SME Innovation in the Malaysian Manufacturing Sector," Economics Bulletin, AccessEcon, vol. 12(30), pages 1-12.
    13. Aldaba, Rafaelita M. & Albert, Jose Ramon G. & Quimba, Francis Mark A. & Yasay, Donald B., 2011. "Results of the 2009 Survey of Innovation Activities (SIA)," Discussion Papers DP 2011-15, Philippine Institute for Development Studies.
    14. Kamal Saggi, 2002. "Trade, Foreign Direct Investment, and International Technology Transfer: A Survey," The World Bank Research Observer, World Bank, vol. 17(2), pages 191-235, September.
    15. Rachel Griffith & Elena Huergo & Jacques Mairesse & Bettina Peters, 2006. "Innovation and Productivity Across Four European Countries," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(4), pages 483-498, Winter.
    16. Cassey Lee, . "The Exporting and Productivity Nexus: Does Firm Size Matter?," Chapters, in: Chin Hee Hahn & Dionisius A. Narjoko (ed.), Globalization and Performance of Small and Large Firms, chapter 8, pages VIII-1 - , Economic Research Institute for ASEAN and East Asia (ERIA).
    17. Aldaba, Rafaelita M. & Aldaba, Fernando T., 2010. "Assessing the Spillover Effects of FDI to the Philippines," Discussion Papers DP 2010-27, Philippine Institute for Development Studies.
    18. Mary Amiti & Jozef Konings, 2007. "Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia," American Economic Review, American Economic Association, vol. 97(5), pages 1611-1638, December.
    19. Wolfgang Keller, 2004. "International Technology Diffusion," Journal of Economic Literature, American Economic Association, vol. 42(3), pages 752-782, September.
    20. Mary Hallward-Driemeier & Giuseppe Iarossi & Kenneth L. Sokoloff, 2002. "Exports and Manufacturing Productivity in East Asia: A Comparative Analysis with Firm-Level Data," NBER Working Papers 8894, National Bureau of Economic Research, Inc.
    21. Fukunari KIMURA, 2006. "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 326-344, December.
    22. Csilla Bartók & Sébastien Miroudot, 2008. "The Interaction amongst Trade, Investment and Competition Policies," OECD Trade Policy Papers 60, OECD Publishing.
    23. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    24. Takii, Sadayuki, 2005. "Productivity spillovers and characteristics of foreign multinational plants in Indonesian manufacturing 1990-1995," Journal of Development Economics, Elsevier, vol. 76(2), pages 521-542, April.
    25. Noor Aini Khalifah & Radziah Adam, 2009. "Productivity Spillovers from FDI in Malaysian Manufacturing: Evidence from Micro‐panel Data," Asian Economic Journal, East Asian Economic Association, vol. 23(2), pages 143-167, June.
    26. Yang, Chih-Hai & Chen, Ying-Hui, 2012. "R&D, productivity, and exports: Plant-level evidence from Indonesia," Economic Modelling, Elsevier, vol. 29(2), pages 208-216.
    27. Aldaba, Rafaelita M., 2012. "Trade Reforms, Competition, and Innovation in the Philippines," Discussion Papers DP 2012-06, Philippine Institute for Development Studies.
    28. Kohpaiboon, Archanun, 2006. "Foreign direct investment and technology spillover: A cross-industry analysis of Thai manufacturing," World Development, Elsevier, vol. 34(3), pages 541-556, March.
    29. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    30. Felipe, Jesus, 2012. "Tracking the Middle-Income Trap: What is It, Who is in It, and Why? Part 2," ADB Economics Working Paper Series 307, Asian Development Bank.
    31. Tomohiro Machikita & Yasushi Ueki, 2015. "Measuring and Explaining Innovative Capability: Evidence from Southeast Asia," Asian Economic Policy Review, Japan Center for Economic Research, vol. 10(1), pages 152-173, January.
    32. Takii, Sadayuki, 2004. "Productivity Differentials Between Local and Foreign Plants in Indonesian Manufacturing, 1995," World Development, Elsevier, vol. 32(11), pages 1957-1969, November.
    33. Ari KUNCORO, 2012. "Globalization and Innovation in Indonesia: Evidence from Micro-Data on Medium and Large Manufacturing Establishments," Working Papers DP-2012-09, Economic Research Institute for ASEAN and East Asia (ERIA).
    34. Alireza Naghavi & Gianmarco I. P. Ottaviano, 2010. "Outsourcing, complementary innovations, and growth," Industrial and Corporate Change, Oxford University Press, vol. 19(4), pages 1009-1035, August.
    35. Ganeshan Wignaraja & Jens Krüger & Anna Mae Tuazon, 2013. "Production Networks, Profits, and Innovative Activity : Evidence from Malaysia and Thailand," Trade Working Papers 23391, East Asian Bureau of Economic Research.
    36. David Greenaway & Richard Kneller, 2007. "Firm heterogeneity, exporting and foreign direct investment," Economic Journal, Royal Economic Society, vol. 117(517), pages 134-161, February.
    37. Ramstetter, Eric D. & Ngoc, Phan Minh, 2013. "Productivity, ownership, and producer concentration in transition: Further evidence from Vietnamese manufacturing," Journal of Asian Economics, Elsevier, vol. 25(C), pages 28-42.
    38. Sadayuki Takii & Eric Ramstetter, 2005. "Multinational presence and labour productivity differentials in Indonesian manufacturing, 1975-2001," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 41(2), pages 221-242.
    39. Charles HARVIE & Dionisius NARJOKO & Sothea OUM, 2010. "Firm Characteristic Determinants of SME Participation in Production Networks," Working Papers DP-2010-11, Economic Research Institute for ASEAN and East Asia (ERIA).
    40. Felipe, Jesus, 2012. "Tracking the Middle-Income Trap: What is It, Who is in It, and Why? Part 1," ADB Economics Working Paper Series 306, Asian Development Bank.
    41. Jesus Felipe & Arnelyn Abdon & Utsav Kumar, 2012. "Tracking the Middle-income Trap: What Is It, Who Is in It, and Why?," Economics Working Paper Archive wp_715, Levy Economics Institute.
    42. Cassey Lee, 2008. "The Relationship Between Innovation, Productivity and Exports: Some Preliminary Evidence from the Malaysian Manufacturing Sector," Economics Bulletin, AccessEcon, vol. 12(31), pages 1-13.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Upalat Korwatanasakul, 2023. "Thailand and the Middle-Income Trap: An Analysis from the Global Value Chain Perspective," PIER Discussion Papers 202, Puey Ungphakorn Institute for Economic Research.
    2. Takatoshi Ito & Kazumasa Iwata & Colin McKenzie & Shujiro Urata, 2015. "Innovation in East Asia: Editors' Overview," Asian Economic Policy Review, Japan Center for Economic Research, vol. 10(1), pages 1-18, January.
    3. repec:era:wpaper:dp-2015-48 is not listed on IDEAS
    4. Tomohiko Inui, 2015. "Comment on “Escaping the Middle-Income Trap in Southeast Asia: Micro Evidence on Innovation, Productivity, and Globalization”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 10(1), pages 150-151, January.
    5. Jianhua Zhang & Mohammad Shahidul Islam, 2020. "The Heterogeneous Impacts of R&D on Innovation in Services Sector: A Firm-Level Study of Developing ASEAN," Sustainability, MDPI, vol. 12(4), pages 1-22, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yang, Chih-Hai & Chen, Ying-Hui, 2012. "R&D, productivity, and exports: Plant-level evidence from Indonesia," Economic Modelling, Elsevier, vol. 29(2), pages 208-216.
    2. Konstantins Benkovskis & Jaan Masso & Olegs Tkacevs & Priit Vahter & Naomitsu Yashiro, 2020. "Export and productivity in global value chains: comparative evidence from Latvia and Estonia," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(3), pages 557-577, August.
    3. Lee, Cassey, 2011. "Trade, productivity, and innovation: Firm-level evidence from Malaysian manufacturing," Journal of Asian Economics, Elsevier, vol. 22(4), pages 284-294, August.
    4. Neil Foster-McGregor, 2012. "Innovation and Technology Transfer across Countries," wiiw Research Reports 380, The Vienna Institute for International Economic Studies, wiiw.
    5. Eric Ramstetter, 2009. "Firm- and Plant-level Analysis of Multinationals in Southeast Asia: the Perils of Pooling Industries and Balancing Panels," Global COE Hi-Stat Discussion Paper Series gd09-106, Institute of Economic Research, Hitotsubashi University.
    6. Enrique López-Bazo & Elisabet Motellón, 2013. "“Firm exports, innovation, … and regions”," AQR Working Papers 201305, University of Barcelona, Regional Quantitative Analysis Group, revised May 2013.
    7. Peters, Bettina & Roberts, Mark J. & Vuong, Van Anh, 2022. "Firm R&D investment and export market exposure," Research Policy, Elsevier, vol. 51(10).
    8. Movahedi, Mohammad & Shahbazi, Kiumars & Gaussens, Olivier, 2017. "Innovation and willingness to export: Is there an effect of conscious self-selection?," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 11, pages 1-22.
    9. Cassey LEE, 2012. "Knowledge Flows, Organization and Innovation: Firm-Level Evidence from Malaysia," Working Papers DP-2012-11, Economic Research Institute for ASEAN and East Asia (ERIA).
    10. Ngo Van Long & Horst Raff & Frank Staehler, 2007. "The Effects of Trade Liberalization on Productivity and Welfare: The Role of Firm Heterogeneity, R&D and Market Structure," Working Papers 0710, University of Otago, Department of Economics, revised Jun 2007.
    11. Movahedi, Mohammad & Gaussens, Olivier, 2011. "Innovation, productivity, and export: Evidence from SMEs in Lower Normandy, France," MPRA Paper 40443, University Library of Munich, Germany, revised 07 Jun 2012.
    12. Jože.P.Damijan & Črt. Kostevc, 2010. "Learning from trade through innovation: Causal link between imports, exports and innovation in Spanish microdata," LICOS Discussion Papers 26410, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    13. Ramstetter, Eric D. & Narjoko, Dionisius, 2013. "Foreign Ownership, State Ownership and Energy Efficiency in Indonesia's Private Manufacturing Plants," AGI Working Paper Series 2013-17, Asian Growth Research Institute.
    14. Bettina Peters & Rebecca Riley & Iulia Siedschlag & Priit Vahter & John McQuinn, 2018. "Internationalisation, innovation and productivity in services: evidence from Germany, Ireland and the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(3), pages 585-615, August.
    15. Lim, King Yoong, 2019. "Industrial Transformation With Heterogeneous Labor And Foreign Experts," Macroeconomic Dynamics, Cambridge University Press, vol. 23(8), pages 3225-3266, December.
    16. Torres Mazzi, Caio & Foster-McGregor, Neil, 2021. "Imported intermediates, technological capabilities and exports: Evidence from Brazilian firm-level data," Research Policy, Elsevier, vol. 50(1).
    17. Eric J. Bartelsman & Martin Falk & Eva Hagsten & Michael Polder, 2019. "Productivity, technological innovations and broadband connectivity: firm-level evidence for ten European countries," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(1), pages 25-48, March.
    18. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 833-872, Elsevier.
    19. Fulvio Castellacci, 2014. "Service Firms Heterogeneity, International Collaborations and Export Participation," Journal of Industry, Competition and Trade, Springer, vol. 14(2), pages 259-285, June.
    20. Ramstetter, Eric D. & Kohpaiboon, Archanun, 2013. "Foreign Ownership and Energy Efficiency in Thailand’s Local Manufacturing Plants," AGI Working Paper Series 2013-15, Asian Growth Research Institute.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:asiapr:v:10:y:2015:i:1:p:124-147. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/jcerrjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.