Agglomeration Economies and Productivity Growth in Manufacturing Industry: Empirical Evidence from Indonesia
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 r...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
Wiley-Blackwell Publishing Asia
2014
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| Online Access: | http://hdl.handle.net/20.500.11937/11895 |
| _version_ | 1848747926935830528 |
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| author | Widodo, W. Salim, Ruhul Bloch, Harry |
| author_facet | Widodo, W. Salim, Ruhul Bloch, Harry |
| author_sort | Widodo, W. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T06:56:55Z |
| format | Journal Article |
| id | curtin-20.500.11937-11895 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T06:56:55Z |
| publishDate | 2014 |
| publisher | Wiley-Blackwell Publishing Asia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-118952019-02-19T05:35:33Z Agglomeration Economies and Productivity Growth in Manufacturing Industry: Empirical Evidence from Indonesia Widodo, W. Salim, Ruhul Bloch, Harry 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. 2014 Journal Article http://hdl.handle.net/20.500.11937/11895 10.1111/1475-4932.12115 Wiley-Blackwell Publishing Asia fulltext |
| spellingShingle | Widodo, W. Salim, Ruhul Bloch, Harry Agglomeration Economies and Productivity Growth in Manufacturing Industry: Empirical Evidence from Indonesia |
| title | Agglomeration Economies and Productivity Growth in Manufacturing Industry: Empirical Evidence from Indonesia |
| title_full | Agglomeration Economies and Productivity Growth in Manufacturing Industry: Empirical Evidence from Indonesia |
| title_fullStr | Agglomeration Economies and Productivity Growth in Manufacturing Industry: Empirical Evidence from Indonesia |
| title_full_unstemmed | Agglomeration Economies and Productivity Growth in Manufacturing Industry: Empirical Evidence from Indonesia |
| title_short | Agglomeration Economies and Productivity Growth in Manufacturing Industry: Empirical Evidence from Indonesia |
| title_sort | agglomeration economies and productivity growth in manufacturing industry: empirical evidence from indonesia |
| url | http://hdl.handle.net/20.500.11937/11895 |