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dc.contributor.authorWidodo, W.
dc.contributor.authorSalim, Ruhul
dc.contributor.authorBloch, Harry
dc.identifier.citationWidodo, W. and Salim, R. and Bloch, H. 2015. The effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from Indonesia. Applied Economics. 47 (31): pp. 3258-3275.

This article examines the effects of agglomeration economies and industrial structure upon firm-level technical efficiency in the Indonesian manufacturing industry over the period 2004–2009. A stochastic production frontier and three channels of agglomeration economies consisting of specialization, diversity and competition are used. The empirical results show that the effects of specialization and diversity upon firm-level technical efficiency are positive and negative, respectively, indicating that specialization is more favourable than diversity for stimulating firms’ technical efficiency. Competition has a positive sign, showing that region with high levels of competition tend to be more conducive in accelerating firm-level technical efficiency. In terms of firm location, both dummy for urban region and industrial complex turn out to be positive, indicating that firms located in both areas are experienced higher technical efficiency. Both firm size and age also have positive effect upon technical efficiency

dc.subjectagglomeration economies
dc.subjectfirm-level technical efficiency
dc.subjectstochastic frontier
dc.subjectindustrial structure
dc.titleThe effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from Indonesia
dc.typeJournal Article
dcterms.source.titleApplied Economics

The Version of Record of this manuscript has been published in Applied Economics (2015),

curtin.departmentSchool of Economics and Finance
curtin.accessStatusOpen access

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