FDI and the Dynamics of Productivity: Microeconomic Evidence

Yumiko Okamoto and Fredrik Sjöholm
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Yumiko Okamoto: Department of Economics, GSID, Nagoya University, Postal: Furocho, Chikusa-ku, Nagoya, Japan 464-8601,

No 348, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: This paper 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. The difference between domestic and foreign owned plants is examined together with a calculation of the foreign owned plants' contribution to overall productivity growth. Productivity growth is mainly explained by reallocation of market shares and from turnover of plants. In addition, we find foreign plants to contribute significantly to overall productivity growth and there is a difference in the causes to productivity growth between foreign and domestic plants.

Keywords: Productivity growth; Plants; Turnover; Manufacturing; Indonesia (search for similar items in EconPapers)
JEL-codes: D24 F23 O53 (search for similar items in EconPapers)
Pages: 32 pages
Date: 1999-12-02
New Economics Papers: this item is included in nep-dev, nep-ifn, nep-ino and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published as Okamoto, Yumiko and Fredrik Sjöholm, 'FDI and the Dynamics of Productivity in Indonesian Manufacturing' in Journal of Development Studies, 2005, pages 160-182.

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