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Total Factor Productivity Growth in Indonesian Manufacturing: A Stochastic Frontier Approach

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  • Mohamad Ikhsan

Abstract

This paper examines the patterns of total factor productivity (TFP) growth and technical efficiency changes in Indonesia's manufacturing industries over the period 1988-2000. A stochastic frontier production has been employed to decompose the sources of TFP growth into technical progress, technical efficiency change and the effects of scale economies. The analysis takes into consideration the impact of the economic crisis in 1997.

Suggested Citation

  • Mohamad Ikhsan, 2007. "Total Factor Productivity Growth in Indonesian Manufacturing: A Stochastic Frontier Approach," Global Economic Review, Taylor & Francis Journals, vol. 36(4), pages 321-342.
    • Handle: RePEc:taf:glecrv:v:36:y:2007:i:4:p:321-342
    DOI: 10.1080/12265080701694488
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    References listed on IDEAS

    as
    1. Hill,Hal, 2000. "The Indonesian Economy," Cambridge Books, Cambridge University Press, number 9780521663670.
    2. Dionisius Narjoko & Hal Hill, 2007. "Winners and Losers during a Deep Economic Crisis: Firm‐level Evidence from Indonesian Manufacturing," Asian Economic Journal, East Asian Economic Association, vol. 21(4), pages 343-368, December.
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    Cited by:

    1. Wahyu Widodo & Ruhul Salim & Harry Bloch, 2015. "The effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from Indonesia," Applied Economics, Taylor & Francis Journals, vol. 47(31), pages 3258-3275, July.
    2. Heru Iswahyudi, 2016. "Back to oil: Indonesia economic growth after Asian financial crisis," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 8(1), pages 25-44, April.
    3. Dyah Wulan Sari & Noor Aini Khalifah & Suyanto Suyanto, 2016. "The spillover effects of foreign direct investment on the firms’ productivity performances," Journal of Productivity Analysis, Springer, vol. 46(2), pages 199-233, December.
    4. Suyanto & Salim, Ruhul A. & Bloch, Harry, 2009. "Does Foreign Direct Investment Lead to Productivity Spillovers? Firm Level Evidence from Indonesia," World Development, Elsevier, vol. 37(12), pages 1861-1876, December.
    5. Dimitrios Giokas & Nicolaos Eriotis & Ioannis Dokas, 2015. "Efficiency and productivity of the food and beverage listed firms in the pre-recession and recessionary periods in Greece," Applied Economics, Taylor & Francis Journals, vol. 47(19), pages 1927-1941, April.
    6. Setiawan, Maman & Emvalomatis, Grigorios & Oude Lansink, Alfons, 2012. "The relationship between technical efficiency and industrial concentration: Evidence from the Indonesian food and beverages industry," Journal of Asian Economics, Elsevier, vol. 23(4), pages 466-475.

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