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Do FDI spillovers vary among home economies?: Evidence from Indonesian manufacturing

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  • Takii, Sadayuki

Abstract

This paper addresses the question of whether effects on economic growth of inward FDI differed according to the origin of investors in Indonesian manufacturing over the period 1990-2003. Implications of regional trends are noted. To address the question, the magnitudes of productivity spillovers from foreign firms (grouped by region) to local large and medium sized manufacturing firms were measured. The results of analyses suggest that MNCs from East Asian economies imparted positive externalities to local firms, whereas MNCs from non-Asian economies did not impart significant effects. Furthermore, the results suggest that MNCs from East Asian economies imparted stronger effects than Japanese MNCs did, whereas the presence of Japanese MNCs enhanced the magnitude of spillovers from other East Asian MNCs.

Suggested Citation

  • Takii, Sadayuki, 2011. "Do FDI spillovers vary among home economies?: Evidence from Indonesian manufacturing," Journal of Asian Economics, Elsevier, vol. 22(2), pages 152-163, April.
  • Handle: RePEc:eee:asieco:v:22:y:2011:i:2:p:152-163
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    References listed on IDEAS

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    Cited by:

    1. repec:bla:jecsur:v:31:y:2017:i:2:p:546-571 is not listed on IDEAS
    2. L. Pérez-Villar & A. Seric, 2015. "Multinationals in Sub-Saharan Africa: Domestic linkages and institutional distance," International Economics, CEPII research center, issue 142, pages 94-117.
    3. Suyanto, & Salim, Ruhul & Bloch, Harry, 2014. "Which firms benefit from foreign direct investment? Empirical evidence from Indonesian manufacturing," Journal of Asian Economics, Elsevier, vol. 33(C), pages 16-29.
    4. repec:eee:asieco:v:52:y:2017:i:c:p:56-76 is not listed on IDEAS
    5. Birte Pfeiffer & Holger Goerg & Lucia Perez-Villar, 2014. "The Heterogeneity of FDI in Sub-Saharan Africa – How Do the Horizontal Productivity Effects of Emerging Investors Differ from Those of Traditional Players?," GIGA Working Paper Series 262, GIGA German Institute of Global and Area Studies.
    6. Pérez-Villar, Lucia & Seric, Adnan, 2015. "Knowledge transfer in global supply chains: Multinationals in Sub-Saharan Africa," Kiel Working Papers 1994, Kiel Institute for the World Economy (IfW).

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