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    Does foreign direct investment lead to productivity spillovers? Firm level evidence from Indonesia

    Access Status
    Fulltext not available
    Authors
    Suyanto, Suyanto
    Salim, Ruhul
    Bloch, Harry
    Date
    2009
    Type
    Journal Article
    
    Metadata
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    Citation
    Suyanto, Suyanto and Salim, Ruhul A. and Bloch, Harry. 2009. Does foreign direct investment lead to productivity spillovers? Firm level evidence from Indonesia. World Development.
    Source Title
    World Development
    DOI
    10.1016/j.worlddev.2009.05.009
    ISSN
    0305-750X
    Faculty
    Curtin Business School
    School of Economics and Finance
    Remarks

    The link to the journal’s home page is : http://www.elsevier.com/wps/find/journaldescription.cws_home/386/description#description

    Copyright © 2009 Elsevier B.V. All rights reserved

    URI
    http://hdl.handle.net/20.500.11937/27723
    Collection
    • Curtin Research Publications
    Abstract

    This paper examines whether spillovers from foreign direct investment (FDI) make any contribution to productivity growth in the Indonesian chemical and pharmaceutical firms using plant-level panel data. The spillover effects from FDI are analyzed using a stochastic frontier approach and productivity growth is decomposed using a generalized Malmquist output-oriented index. The results show positive productivity spillovers from FDI; higher competition is associated with larger spillovers; and domestic firms with R&D gain more spillover benefits compared to those without R&D. FDI spillovers are found to be positive and significant for technological progress and positive, but not significant, for technical and scale efficiency change.

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