Agglomeration Economies and Productivity Growth in Manufacturing Industry: Empirical Evidence from Indonesia
MetadataShow full item record
This study examines the effect of agglomeration economies on productivity growth in Indonesian manufacturing industries during the first decade of this century. Productivity growth is measured at the firm level using the Färe-Primont Productivity Index. Each firm's productivity growth is then regressed against a set of firm and industry characteristics, including three measures of agglomeration representing the effects of specialisation, diversity and competition. The results show evidence of a positive specialisation effect and a negative diversity effect for aggregate manufacturing and sub-sectors. Furthermore, there are mixed effects across industries, suggesting that Porter's competition externalities stimulate firm productivity growth under some conditions but not others.
This is the accepted version of the following article: Widodo, W. and Salim, R. and Bloch, H. 2014. Agglomeration Economies and Productivity Growth in Manufacturing Industry: Empirical Evidence from Indonesia. The Economic Record. 90 (s1): pp. 41-58., which has been published in final form at http://doi.org/10.1111/1475-4932.12115
Showing items related by title, author, creator and subject.
Geneste, Louis André (2010)This thesis examines the role that non-collaborative, weak exchange relationships might play in the acquisition of knowledge by small and medium-sized enterprises (SMEs). An important source of knowledge for a firm lies ...
Foreign direct investment spillovers and productivity growth in Indonesian garment and electronics manufacturingSuyanto; Bloch, Harry; Salim, Ruhul (2012)Inflows of foreign direct investment generate externalities that spill over to domestic firms and raise their productivity. This article examines the extent of spillover effects of foreign direct investment for firms in ...
Sources of productivity gains from FDI in Indonesia: is it efficiency improvement or technological progress?Suyanto, Suyanto; Salim, Ruhul (2010)This article investigates the spillover effects of foreign direct investment (FDI) on productivity growth in the Indonesian food-processing (ISIC 311) and electrical machinery industries (ISIC 383). Total factor productivity ...