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Productivity gains, technology spillovers and trade: Indonesian manufacturing, 1980-96

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  • Jojo Jacob
  • Christoph Meister

Abstract

The importance of R&D spillovers for productivity growth has been well documented in the literature. While studies in the developed country context have focused extensively on sectoral linkages, research on North-South spillovers has largely been confined to the aggregate level. This paper assesses the contribution of international R&D spillovers to manufacturing performance in Indonesia at the sectoral level. Drawing on OECD and Indonesian data sources, we consider two distinct phases: a phase characterised by intense policy regulation (1980-87), followed by a phase of liberalisation and reform (1988-96). Our results indicate that international technology spillovers made a significant contribution to the performance of Indonesian manufacturing, especially after liberalisation. The contribution of technology spillovers to productivity change is influenced by sectoral characteristics and industrial market structure.

Suggested Citation

  • Jojo Jacob & Christoph Meister, 2005. "Productivity gains, technology spillovers and trade: Indonesian manufacturing, 1980-96," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 41(1), pages 37-56.
    • Handle: RePEc:taf:bindes:v:41:y:2005:i:1:p:37-56
    DOI: 10.1080/00074910500072674
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    References listed on IDEAS

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    Cited by:

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    2. Kyunghoon Kim & Arriya Mungsunti & Andy Sumner & Arief Anshory Yusuf, 2020. "Structural transformation and inclusive growth: Kuznets' 'developer's dilemma' in Indonesia," WIDER Working Paper Series wp-2020-31, World Institute for Development Economic Research (UNU-WIDER).
    3. Peter Warr, 2006. "Productivity Growth in Thailand and Indonesia: How Agriculture Contributes to Economic Growth," Working Papers in Economics and Development Studies (WoPEDS) 200606, Department of Economics, Padjadjaran University, revised Feb 2006.
    4. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 833-872, Elsevier.
    5. Noor Aini Khalifah & Salmah Mohd Salleh & Radziah Adam, 2015. "FDI productivity spillovers and the technology gap in Malaysia's electrical and electronic industries," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 29(1), pages 142-160, May.
    6. Horas Djulius, 2017. "Foreign Direct Investment and Technology Transfer: Knowledge Spillover in the Manufacturing Sector in Indonesia," Global Business Review, International Management Institute, vol. 18(1), pages 57-70, February.
    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.
    8. Amrita Saha & André Castro & Marco Carreras & Daniele Guariso, 2020. "Trade, technology, and absorptive capacity: Firm-level evidence across geographical clusters in the Tanzanian textiles and apparel sector," WIDER Working Paper Series wp-2020-96, World Institute for Development Economic Research (UNU-WIDER).
    9. Khoirunurrofik, 2020. "Does the Crisis Change the Nature of Agglomeration Economies in Indonesia? : A Productivity Analysis of Pre-Post 1997-1998 Financial Crisis," REGION, European Regional Science Association, vol. 7, pages 85-106.

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