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Exporting and Foreign Ownership in Indonesian Manufacturing, 1990-2000

Author

Listed:
  • Eric D. Ramstetter
  • Sadayuki Takii

Abstract

Foreign plants usually accounted for disproportionately large shares of exports in Indonesian manufacturing industries and exports of heavily-foreign plants (foreign ownership shares of 90-100 per cent) grew conspicuously after the early-1990s. Foreign plants usually had significantly higher export propensities than local plants, although accounting for variation in factor intensities, size, and vintage reduced the differences. Heavily-foreign plants tended to have the highest export propensities, but differences among foreign ownership groups were statistically insignificant in half of the cases examined. Statistically significant differences among foreign plants were concentrated in heavily-foreign plants in textiles, plastics, basic metals, metal products, and electric and precision machinery during the mid- to late-1990s.

Suggested Citation

  • Eric D. Ramstetter & Sadayuki Takii, 2006. "Exporting and Foreign Ownership in Indonesian Manufacturing, 1990-2000," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 54, pages 315-343, December.
    • Handle: RePEc:lpe:efijnl:200611
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    File URL: http://www.lpem.org/repec/lpe/efijnl/20061.pdf
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    Citations

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    Cited by:

    1. Ergun Dogan & Koi Wong & Michael Yap, 2013. "Turnover, ownership and productivity in Malaysian manufacturing," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 18(1), pages 26-50.
    2. Ramstetter, Eric D., 2014. "Exporting, Education, and Wage Differentials between Foreign Multinationals and Local Plants in Indonesian and Malaysian Manufacturing," AGI Working Paper Series 2014-03, Asian Growth Research Institute.
    3. Ramstetter, Eric D. & Narjoko, Dionisius, 2013. "Wage Differentials between Foreign Multinationals and Local Plants and Worker Education in Indonesian Manufacturing," AGI Working Paper Series 2013-23, Asian Growth Research Institute.
    4. Mohammad Zulfan Tadjoeddin & Ilmiawan Auwalin & Anis Chowdhury, 2016. "Revitalizing Indonesia’s manufacturing: the productivity conundrum," Departmental Working Papers 2016-20, The Australian National University, Arndt-Corden Department of Economics.

    More about this item

    Keywords

    multinational corporations; foreign ownership; exports; Southeast Asia; Indonesia; manufacturing;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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