SSE/EFI Working Paper Series in Economics and Finance
No 348:
FDI and the Dynamics of Productivity: Microeconomic Evidence
Yumiko Okamoto and Fredrik Sjöholm ()
Abstract: This paper examines productivity growth in the Indonesian
manufacturing sector. We use a longitudinal data set to calculate the
effects on aggregate manufacturing productivity growth from improvements
within establishments, from reallocation of market shares, and from the
turnover of plants. The difference between domestic and foreign owned
plants is examined together with a calculation of the foreign owned plants'
contribution to overall productivity growth. Productivity growth is mainly
explained by reallocation of market shares and from turnover of plants. In
addition, we find foreign plants to contribute significantly to overall
productivity growth and there is a difference in the causes to productivity
growth between foreign and domestic plants.
Keywords: Productivity growth; Plants; Turnover; Manufacturing; Indonesia; (follow links to similar papers)
JEL-Codes: D24; F23; O53; (follow links to similar papers)
32 pages, December 2, 1999
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- This paper is published as:
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Okamoto, Yumiko and Fredrik Sjöholm, (2005), 'FDI and the Dynamics of Productivity in Indonesian Manufacturing', Journal of Development Studies, Vol. 41, No. 1, pages 160-182
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