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MNEs and Energy Efficiency in Southeast Asian Manufacturing


  • Eric D. Ramstetter

    () (International Centre for the Study of East Asian Development (ICSEAD), Kokurakita-ku Kitakyushu, Japan and Faculty of Economics, Higashi-ku Kyushu University, Japan)

  • Shahrazat Binti

    (Haji Ahmad Implementation Coordination Unit, Prime Minister's Department, Putrajaya, Malaysia)

  • Archanun Kohpaiboon

    (Faculty of Economics, Prachan Road Thammasat University, Bangkok, Thailand)

  • Dionisius Narjoko

    (Economic Research Institute for ASEAN and East Asia (ERIA), Jakarta, Indonesia)


After controlling for the influences of plant-level factor usage and technical characteristics, foreign multinational enterprises (MNEs) used fuel and total energy more efficiently than local manufacturing plants in about one-third of Malaysia's large energy using industries. MNE-local or MNE-private differentials were insignificant, however, in most industries for electricity in Malaysia; total energy, electricity and three fuels (diesel, natural gas, and coal) in Indonesia; and total energy in Thailand. In short, MNEs and local or private plants generally used purchased energy with similar efficiency, probably because they faced similar host country policies and used similar energy technologies. © 2013 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.

Suggested Citation

  • Eric D. Ramstetter & Shahrazat Binti & Archanun Kohpaiboon & Dionisius Narjoko, 2013. "MNEs and Energy Efficiency in Southeast Asian Manufacturing," Asian Economic Papers, MIT Press, vol. 12(3), pages 120-147, Fall.
  • Handle: RePEc:tpr:asiaec:v:12:y:2013:i:3:p:120-147

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    Cited by:

    1. Robert J. R. Elliott & Toshihiro Okubo, 2016. "Ecological Modernization in Japan: The Role of Interest Rate Subsidies and Voluntary Pollution Control Agreements," Asian Economic Papers, MIT Press, vol. 15(3), pages 66-88, Fall.
    2. Jiang, Xuemei & Zhu, Kunfu & Green, Christopher, 2015. "China's energy saving potential from the perspective of energy efficiency advantages of foreign-invested enterprises," Energy Economics, Elsevier, vol. 49(C), pages 104-112.

    More about this item


    ownership; multinational enterprises; energy efficiency; Southeast Asia; manufacturing;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General


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