FDI and the Dynamics of Productivity: Microeconomic Evidence
AbstractThis paper examines productivity growth in the Indonesian manufacturing sector. We use a longitudinal data set to calculate the effects on aggregate manufacturing productivity growth from improvements within establishments, from reallocation of market shares, and from the turnover of plants. The difference between domestic and foreign owned plants is examined together with a calculation of the foreign owned plants' contribution to overall productivity growth. Productivity growth is mainly explained by reallocation of market shares and from turnover of plants. In addition, we find foreign plants to contribute significantly to overall productivity growth and there is a difference in the causes to productivity growth between foreign and domestic plants.
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Bibliographic InfoPaper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 348.
Length: 32 pages
Date of creation: 02 Dec 1999
Date of revision:
Publication status: Published as Okamoto, Yumiko and Fredrik Sjöholm, 'FDI and the Dynamics of Productivity in Indonesian Manufacturing' in Journal of Development Studies, 2005, pages 160-182.
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Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden
Phone: +46-(0)8-736 90 00
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Web page: http://www.hhs.se/
More information through EDIRC
Productivity growth; Plants; Turnover; Manufacturing; Indonesia;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-01-24 (All new papers)
- NEP-DEV-2000-01-24 (Development)
- NEP-IFN-2000-01-24 (International Finance)
- NEP-INO-2000-01-24 (Innovation)
- NEP-TID-2000-01-24 (Technology & Industrial Dynamics)
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