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Which Indonesian firms export? The importance of foreign networks

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  • Fredrik Sjöholm

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Abstract

This article examines export propensities among Indonesian manufacturers. The pattern of trade between nations is well understood, but much less is known about firm level determinants to export: why do some Indonesian firms start to export while others continue to produce for the domestic market? One reason for different export propensities could be that the sunk costs for exports differ between firms. This article examines if foreign networks decrease export-costs and thereby have a positive impact on the export propensity in Indonesian manufacturing establishments. Three different types of foreign networks are examined: foreign ownership, import, and the regional presence of Foreign Direct Investment (FDI). Copyright Springer-Verlag Berlin/Heidelberg 2003

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File URL: http://hdl.handle.net/10.1007/s10110-003-0163-1
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Bibliographic Info

Article provided by Springer in its journal Papers in Regional Science.

Volume (Year): 82 (2003)
Issue (Month): 3 (September)
Pages: 333-350

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Handle: RePEc:spr:ecogov:v:82:y:2003:i:3:p:333-350

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Related research

Keywords: Asia; Indonesia; exports; trade; FDI;

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Cited by:
  1. Matthew A. Cole & Robert J. R. Elliott & Supreeya Virakul, 2010. "Firm Heterogeneity, Origin of Ownership and Export Participation," The World Economy, Wiley Blackwell, vol. 33(2), pages 264-291, 02.
  2. Correa, Paulo & Dayoub, Mariam & Francisco, Manuela, 2007. "Identifying supply-side constraints to export performance in Ecuador : an exercise with Investment Climate Survey data," Policy Research Working Paper Series 4179, The World Bank.
  3. Keshari, Pradeep Kumar, 2012. "FDI and firm level export competitiveness in the Indian machinery industry," MPRA Paper 47069, University Library of Munich, Germany.
  4. Elisa Giuliani & Chiara Macchi, 2013. "Multinational Corporations’ Economic And Human Rights Impacts On Developing Countries: A Review And Research Agenda," Discussion Papers 2013/158, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  5. Rodríguez-Pose, Andrés & Tselios, Vassilis & Winkler, Deborah & Farole, Thomas, 2013. "Geography and the Determinants of Firm Exports in Indonesia," World Development, Elsevier, vol. 44(C), pages 225-240.
  6. Giuliano CONTI & Alessia LO TURCO & Daniela MAGGIONI, 2010. "Backward linkages and the export;performance of business services.;Evidence from a sample of Italian firms," Working Papers 352, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  7. 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.

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