FDI and the Dynamics of Productivity in Indonesian Manufacturing
This article 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. Productivity growth is mainly explained by reallocation of market shares and from turnover of plants. Moreover, the foreign contribution to productivity growth is unclear and depends on the choice of productivity measure. A cautious conclusion is that the foreign contribution is about the same size as the foreign share of manufacturing output. Finally, there is a difference in the causes of productivity growth between foreign and domestic plants.
Year of publication: |
2005
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Authors: | Okamoto, Yumiko ; Sjoholm, Fredrik |
Published in: |
Journal of Development Studies. - Taylor & Francis Journals, ISSN 0022-0388. - Vol. 41.2005, 1, p. 160-182
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Publisher: |
Taylor & Francis Journals |
Saved in:
Online Resource
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