Abstract: Indonesia, like many other countries in South East Asia, has actively promoted the automotive industry. The governmental interventions have ranged from tariffs and non-tariff barriers to various local content programs. As a result, imports of ready made cars and motorcycles have been expensive, which led to an inflow of foreign producers. This paper examines the productivity performance in the Indonesian automotive industries. More specifically, we try to answer two questions. Firstly, has the government intervention been successful in lifting the industry from its "infant industry" status? Secondly, what roles have multinational enterprises played in the development of the automotive industry in Indonesia? In examining the issues at hand, we use establishment data for the Indonesian automotive industries between 1990-1995. Our choice of methodology enables us to examine the dynamics of the different industries' productivity performance: which establishments account for most of the productivity growth, and how important entry and exit of establishments are to the overall performance.

Keywords: Productivity; Growth; Automotive industry; Indonesia; Protection.

JEL-codes: F23; O38

25 pages, June 15, 1999

Full text files

hastef0324.tab.ps.zip PostScript file Tables

hastef0324.tab.ps PostScript file Tables

hastef0324.tab.pdf  Tables

hastef0324.tab.pdf.zip  Tables

hastef0324.pdf.zip  Full text

hastef0324.pdf  Full text

hastef0324.ps.zip PostScript file Full text

hastef0324.ps PostScript file Full text

Download statistics

Published as

Yumiko Okamoto and Fredrik Sjöholm, (2000), 'Productivity in the Indonesian Automotive Industry', ASEAN Economic bulletin, vol 17, pages 1-14

• Stockholm School of Economics
• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Helena Lundin ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:hastef:0324This page generated on 2024-09-13 22:15:05.