Do FDI spillovers vary among home economies?: Evidence from Indonesian manufacturing

Sadayuki Takii

Journal of Asian Economics, 2011, vol. 22, issue 2, pages 152-163

Abstract: This paper addresses the question of whether effects on economic growth of inward FDI differed according to the origin of investors in Indonesian manufacturing over the period 1990-2003. Implications of regional trends are noted. To address the question, the magnitudes of productivity spillovers from foreign firms (grouped by region) to local large and medium sized manufacturing firms were measured. The results of analyses suggest that MNCs from East Asian economies imparted positive externalities to local firms, whereas MNCs from non-Asian economies did not impart significant effects. Furthermore, the results suggest that MNCs from East Asian economies imparted stronger effects than Japanese MNCs did, whereas the presence of Japanese MNCs enhanced the magnitude of spillovers from other East Asian MNCs.

Keywords: Indonesia; MNCs; Manufacturing; Productivity; spillovers (search for similar items in EconPapers)
Date: 2011
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Persistent link: http://EconPapers.repec.org/RePEc:eee:asieco:v:22:y:2011:i:2:p:152-163

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