Fredrik Sjöholm: The European Institute of Japanese Studies at the Stockholm School of Economics, Postal: P.O. Box 6501, S-113 83 Stockholm, Sweden
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.
21 pages, August 19, 1997
Note: Revised version forthcoming in World Development
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