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Exports, Imports and Productivity: Results from Indonesian Establishment Data

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  • Sjöholm, Fredrik

    () (The European Institute of Japanese Studies at the Stockholm School of Economics)

Abstract

Using detailed micro data from the Indonesian manufacturing sector, we examine whether participation in international trade affects establishments' productivity. Establishments participating in exports or imports have relatively high levels of productivity. Furthermore, the results suggest that establishments engaged in exports have shown comparable high productivity growth. The larger the share of an establishment's output that is exported the higher its productivity growth. The results concerning the effect of imports on productivity growth are mixed.

Suggested Citation

  • Sjöholm, Fredrik, 1997. "Exports, Imports and Productivity: Results from Indonesian Establishment Data," SSE/EFI Working Paper Series in Economics and Finance 183, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0183
    Note: Revised version forthcoming in World Development
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    Cited by:

    1. Joachim Wagner, 2007. "Exports and Productivity: A Survey of the Evidence from Firm‐level Data," The World Economy, Wiley Blackwell, vol. 30(1), pages 60-82, January.
    2. Faundez, Sebastian & Mulder, Nanno & Carpentier, Nicole, 2011. "Productivity growth in Latin American manufacturing: what role for international trade intensities?," MPRA Paper 36507, University Library of Munich, Germany.
    3. Davide Castellani & Francesco Serti & Chiara Tomasi, 2010. "Firms in International Trade: Importers’ and Exporters’ Heterogeneity in Italian Manufacturing Industry," The World Economy, Wiley Blackwell, vol. 33(3), pages 424-457, March.
    4. Echavarría Juan José & María Angélica Arbeláez & María Fernanda Rosales, 2006. "La productividad y sus determinantes:el caso de la industria colombiana," Revista Desarrollo y Sociedad, Universidad de los Andes - CEDE, June.
    5. Jayanthakumaran, Kankesu, 2002. "The Impact of Trade Liberalisation on Manufacturing Sector Performance in Developing Countries: A Survey of the Literature," Economics Working Papers wp02-07, School of Economics, University of Wollongong, NSW, Australia.
    6. Deb Kusum Das, 2007. "Trade Liberalization and Industrial Productivity: An Assessment of Developing Country Experiences," Working Papers id:1009, eSocialSciences.
    7. Elitsa R. Banalieva & Ravi Sarathy, 2011. "A Contingency Theory of Internationalization," Management International Review, Springer, vol. 51(5), pages 593-634, October.
    8. Youssouf KIENDREBEOGO, 2012. "Export Activity and Productivity: New Evidence from the Egyptian Manufacturing Industry," Working Papers 201220, CERDI.
    9. Vial, Virginie & Hanoteau, Julien, 2010. "Corruption, Manufacturing Plant Growth, and the Asian Paradox: Indonesian Evidence," World Development, Elsevier, vol. 38(5), pages 693-705, May.
    10. Lal, K., 2004. "E-Business and Export Behavior: Evidence from Indian Firms," World Development, Elsevier, vol. 32(3), pages 505-517, March.
    11. Thomas W. Hertel & L. Alan Winters, 2006. "Poverty and the WTO : Impacts of the Doha Development Agenda," World Bank Publications, The World Bank, number 7411, June.
    12. Badri Narayan Rath & Vaseem Akram, 2017. "Export diversification and total factor productivity growth in case of South Asian region," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(1), pages 196-210, April.
    13. Anthony Enisan Akinlo, 2005. "Impact of Macroeconomic Factors on Total Factor Productivity in Sub-Saharan African Countries," WIDER Working Paper Series RP2005-39, World Institute for Development Economic Research (UNU-WIDER).
    14. 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.
    15. Tirta Mursitama, 2006. "Creating relational rents: The effect of business groups on affiliated firms’ performance in Indonesia," Asia Pacific Journal of Management, Springer, vol. 23(4), pages 537-557, December.
    16. Anthony Ilegbinosa Imoisi, 2018. "Is Trade Openness Suitable for Growth of the Nigerian Manufacturing Sector? An Autoregressive Distributed Lag Approach," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(2), pages 71-82, June.
    17. Hansen, Thorsten, 2010. "Tariff Rates, Offshoring and Productivity: Evidence from German and Austrian Firm-Level Data," Discussion Papers in Economics 11465, University of Munich, Department of Economics.
    18. Neil Foster-McGregor & Anders Isaksson & Florian Kaulich, 2013. "Importing, Productivity and Absorptive Capacity in Sub-Saharan African Manufacturing Firms," wiiw Working Papers 105, The Vienna Institute for International Economic Studies, wiiw.
    19. Takii, Sadayuki, 2004. "Productivity Differentials Between Local and Foreign Plants in Indonesian Manufacturing, 1995," World Development, Elsevier, vol. 32(11), pages 1957-1969, November.
    20. Sangho KIM & Hyunjoon LIM & Donghyun PARK, 2007. "The Effect of Imports and Exports on Total Factor Productivity in Korea," Discussion papers 07022, Research Institute of Economy, Trade and Industry (RIETI).
    21. Yeboah, Osei-Agyeman & Naanwaab, Cephas B. & Saleem, Shaik & Akuffo, Akua S., 2012. "Effects of Trade Openness on Economic Growth: The Case of African Countries," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119795, Southern Agricultural Economics Association.
    22. Sjöholm, Fredrik, 1999. "Do Foreign Contacts Enable Firms to Become Exporters?," SSE/EFI Working Paper Series in Economics and Finance 326, Stockholm School of Economics.
    23. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2005. "Global impacts of Doha trade reform scenarios on poverty," Policy Research Working Paper Series 3735, The World Bank.

    More about this item

    Keywords

    Indonesia; Growth; Industry; Trade;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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