Productivity Growth in Indonesia: The Role of Regional Characteristics and Direct Foreign Investment

Fredrik Sjöholm

No 216, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: Using detailed micro data from the Indonesian manufacturing sector, we examine the effect on productivity growth of different regional characteristics and direct foreign investment. The results suggest that a diversified regional industry sector increase productivity growth. Direct foreign investment benefits establishments in neighbouring industries within the region. There are intra-industry spillovers from direct foreign investment at a national level, but there does not seem to be a geographic component in this type of spillovers.

Keywords: Indonesia; regional development; direct foreign investment; spillovers; productivity (search for similar items in EconPapers)
JEL-codes: F23 O12 R11 (search for similar items in EconPapers)
Pages: 42 pages
Date: 1998-01-14
New Economics Papers: this item is included in nep-eff and nep-ifn
Note: Revised version forhtcoming in Economic Development and Cultural Change (jan, 1999).
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Citations: View citations in EconPapers (6)

Forthcoming in Economic Development and Cultural Change.

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Related works:
Journal Article: Productivity Growth in Indonesia: The Role of Regional Characteristics and Direct Foreign Investment (1999)
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