SSE/EFI Working Paper Series in Economics and Finance
Productivity Growth in Indonesia: The Role of Regional Characteristics and Direct Foreign Investment
Abstract: Using detailed micro data from the Indonesian
manufacturing sector, we examine the effect on productivity growth of
different regional characteristics and direct foreign investment. The
results suggest that a diversified regional industry sector increase
productivity growth. Direct foreign investment benefits establishments in
neighbouring industries within the region. There are intra-industry
spillovers from direct foreign investment at a national level, but there
does not seem to be a geographic component in this type of spillovers.
Keywords: Indonesia; regional development; direct foreign investment; spillovers; productivity; (follow links to similar papers)
JEL-Codes: F23; O12; R11; (follow links to similar papers)
42 pages, January 14, 1998
Revised version forhtcoming in Economic Development and Cultural Change (jan, 1999).
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- This paper is forthcoming as:
Sjöholm, Fredrik, 'Productivity Growth in Indonesia: The Role of Regional Characteristics and Direct Foreign Investment', Economic Development and Cultural Change.
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