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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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    1. Thee Kian Wie, 2002. "Competition Policy in Indonesia and the New Anti-Monopoly and Fair Competition Law," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 38(3), pages 331-342.
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    5. Fagerberg, Jan & Verspagen, Bart, 1998. "Productivity, R&D Spillovers and Trade," Working Papers 98.2, Eindhoven Center for Innovation Studies.
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    7. Schneider, Johannes & Ziesemer, Thomas, 1994. "What's New and What's Old in New Growth Theory: Endogenous Technology, Microfoundation, and Growth Rate Predictions," MPRA Paper 56132, University Library of Munich, Germany.
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    Cited by:

    1. 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, Asia Pacific School of Economics and Government, The Australian National University, vol. 29(1), pages 142-160, May.
    2. Warr, Peter G., 2006. "Productivity Growth in Thailand and Indonesia: How Agriculture Contributes to Economic Growth," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139925, Australian Agricultural and Resource Economics Society.
    3. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, Elsevier.
    4. 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.

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