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Determinants of plant performance dynamics: empirical analysis of the manufacturing sector in Indonesia, 1990-2000

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  • Shunsuke Managi
  • Shinji Kaneko

Abstract

We identify determinants of plant dynamics and find their differences before, during, and after the Asian financial crisis. The results show that the distinction of the crisis is important and the effects of the crisis do not seem to persist after 1998. Furthermore, we reject Gibrat's law as the right functional form to describe plant growth. We are not able to support empirically the theoretical results that smaller and efficient plants tend to grow faster than larger and inefficient plants with the exception of the crisis period. The results reflect that there was a trickle down effect of economic development.

Suggested Citation

  • Shunsuke Managi & Shinji Kaneko, 2008. "Determinants of plant performance dynamics: empirical analysis of the manufacturing sector in Indonesia, 1990-2000," World Review of Entrepreneurship, Management and Sustainable Development, Inderscience Enterprises Ltd, vol. 4(4), pages 273-290.
    • Handle: RePEc:ids:wremsd:v:4:y:2008:i:4:p:273-290
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