Foreign Ownership, State Ownership and Energy Efficiency in Indonesia's Private Manufacturing Plants

Eric Ramstetter () and Dionisius Narjoko

No 2013-17, AGI Working Paper Series from Asian Growth Research Institute

Abstract: This paper examines correlations between the shares of foreign multinational enterprises (MNEs) or state-owned enterprises (SOEs) in Indonesian manufacturing industries and energy efficiency in local, private plants in those industries using data on medium-large plants from the industrial censuses for 1996 and 2006. The econometric results suggest that energy intensities in private plants were often positively correlated with the presence of SOEs and majority-foreign MNEs but negatively correlated with the presence of heavily- and minority-foreign MNEs in 1996. However, the results were often reversed for 2006 and were sensitive to the sample analyzed as well as the measure of SOE or MNE presence and its level of aggregation.

Keywords: multinational enterprise; energy efficiency; spillover; Malaysia; manufacturing (search for similar items in EconPapers)
JEL-codes: F23 L60 O53 Q40 (search for similar items in EconPapers)
Date: 2013-06
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