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Productivity Growth in Indonesia: The Role of Regional Characteristics and Direct Foreign Investment

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  • Sjöholm, Fredrik

    ()
    (The European Institute of Japanese Studies)

Abstract

Using detailed micro data from the Indonesian manufacturing sector, we examine the effect on productivity growth of different regional characteristics and direct foreign investment. The results suggest that a diversified regional industry sector increase productivity growth. Direct foreign investment benefits establishments in neighbouring industries within the region. There are intra-industry spillovers from direct foreign investment at a national level, but there does not seem to be a geographic component in this type of spillovers.

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Bibliographic Info

Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 216.

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Length: 42 pages
Date of creation: 14 Jan 1998
Date of revision:
Publication status: Forthcoming in Economic Development and Cultural Change.
Handle: RePEc:hhs:hastef:0216

Note: Revised version forhtcoming in Economic Development and Cultural Change (jan, 1999).
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Keywords: Indonesia; regional development; direct foreign investment; spillovers; productivity;

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