Structure, Productivity Growth and Spillover Effects: An Empirical Investigation of Indonesian Manufacturing
Tuwo, Lukita Dinarsyah
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https://hdl.handle.net/2142/85641
Description
Title
Structure, Productivity Growth and Spillover Effects: An Empirical Investigation of Indonesian Manufacturing
Author(s)
Tuwo, Lukita Dinarsyah
Issue Date
1998
Doctoral Committee Chair(s)
Rashid, Salim
Department of Study
Economics
Discipline
Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Economics, Commerce-Business
Language
eng
Abstract
Chapter 4 presents the examination of the FDI impact on performance of Indonesian manufacturing plants measured by their level of efficiency, during the period 1987--1992. Technical efficiency of individual firms is estimated using stochastic frontier approach to panel data. Panel data, which are time series on a set of cross-sectional data, offer several major advantages over conventional cross-sectional or time series data. The study fails to find a robust spillover effects in term of productivity level and growth. These results raise questions to justify long-term incentives for foreign investors, provided by many LDCs to win a fierce competition among themselves in attracting foreign firms to invest in their countries.
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