Host-site Support, Foreign Ownership, Regional Linkages and Technological Capabilities: Evidence from Automotive Firms in Indonesia

Rajah Rasiah, Rafat Beigpoor Shahrivar and Abdusy Syakur Amin
Additional contact information
Rafat Beigpoor Shahrivar: Development Studies Department, University of Malaya
Abdusy Syakur Amin: Facutlty of Engineering, University of Pasundan

No DP-2015-08, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This study analyses the influence of host-site institutional support, foreign ownership and regional production linkages on firm-level technological capabilities using data from automotive firms in Indonesia. The results show that host-site institutional support and foreign ownership are positively correlated with technological capabilities. In addition, regional linkages show a significant and positive link on technological capabilities. However, regional linkages and foreign ownership explain more strongly technological capabilities than host-site institutional support in automotive firms in Indonesia. This evidence suggests that the supporting high tech environment require further strengthening to stimulate higher technological capabilities in the automotive industry in Indonesia.

Keywords: automotive firms; institutional support; Indonesia; regional linkages; technological capabilities (search for similar items in EconPapers)
JEL-codes: L14 L22 L62 O31 (search for similar items in EconPapers)
Pages: 26 pages.
Date: 2015-02
New Economics Papers: this item is included in nep-cse, nep-sea and nep-ure
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Related works:
Journal Article: Host-site support, foreign ownership, regional linkages and technological capabilities: evidence from automotive firms in Indonesia (2016)
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