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MNEs and Energy Efficiency in Southeast Asian Manufacturing

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Author Info

  • Eric D. Ramstetter

    ()
    (International Centre for the Study of East Asian Development (ICSEAD), Kokurakita-ku Kitakyushu, Japan and Faculty of Economics, Higashi-ku Kyushu University, Japan)

  • Shahrazat Binti

    (Haji Ahmad Implementation Coordination Unit, Prime Minister's Department, Putrajaya, Malaysia)

  • Archanun Kohpaiboon

    (Faculty of Economics, Prachan Road Thammasat University, Bangkok, Thailand)

  • Dionisius Narjoko

    (Economic Research Institute for ASEAN and East Asia (ERIA), Jakarta, Indonesia)

Abstract

After controlling for the influences of plant-level factor usage and technical characteristics, foreign multinational enterprises (MNEs) used fuel and total energy more efficiently than local manufacturing plants in about one-third of Malaysia's large energy using industries. MNE-local or MNE-private differentials were insignificant, however, in most industries for electricity in Malaysia; total energy, electricity and three fuels (diesel, natural gas, and coal) in Indonesia; and total energy in Thailand. In short, MNEs and local or private plants generally used purchased energy with similar efficiency, probably because they faced similar host country policies and used similar energy technologies. © 2013 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by MIT Press in its journal Asian Economic Papers.

Volume (Year): 12 (2013)
Issue (Month): 3 (October)
Pages: 120-147

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Handle: RePEc:tpr:asiaec:v:12:y:2013:i:3:p:120-147

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Keywords: ownership; multinational enterprises; energy efficiency; Southeast Asia; manufacturing;

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