SUPERSTAR FIRMS, PRODUCTIVITY AND TECHNOLOGICAL PROGRESS: EVIDENCE FROM INDONESIA’S MANUFACTORING SECTOR

Masagus M Ridhwan, Rizki Nauli Siregar () and Jahen Rezki
Additional contact information
Rizki Nauli Siregar: University of Mainz

No WP/10/2022, Working Papers from Bank Indonesia

Abstract: Countries currently face two big trends, especially in the manufacturing sector: premature deindustrialization and the prevalence of superstar firms. In this paper, we document and characterize firm heterogeneity in a developing economy context, using Indonesia from 2005 to 2015 as context. We show the importance of large firms in shaping aggregate outcomes in the manufacturing sector. Furthermore, we confirm that productivity growth increases domestic market shares and profit by increasing the power to exert mark-up and reducing labor shares. We also show the importance of international trade engagement by superstar firms. We show new insights on superstar firms that do not necessarily have higher mark-up rates than others. The policy implication from this study is efforts to boost superstar firms in Indonesia will be paramount, especially policies to increase firms’ size and promoting exports.

Keywords: Manufacture; Superstar Firms; Firm Heterogeneity; Indonesia (search for similar items in EconPapers)
JEL-codes: D42 L11 O11 O33 O43 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2022
New Economics Papers: this item is included in nep-bec, nep-eff and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://publication-bi.org/repec/idn/wpaper/WP102022.pdf First version, 2022 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idn:wpaper:wp102022

Access Statistics for this paper

More papers in Working Papers from Bank Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Lutzardo Tobing ( this e-mail address is bad, please contact ) and Jimmy Kathon ().