The effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from Indonesia
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,...
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| Format: | Journal Article |
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Routledge
2015
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| Online Access: | http://hdl.handle.net/20.500.11937/18095 |
| _version_ | 1848749645935673344 |
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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 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 |
| first_indexed | 2025-11-14T07:24:14Z |
| format | Journal Article |
| id | curtin-20.500.11937-18095 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T07:24:14Z |
| publishDate | 2015 |
| publisher | Routledge |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-180952017-09-13T13:45:15Z The effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from Indonesia Widodo, W. Salim, Ruhul Bloch, Harry agglomeration economies firm-level technical efficiency stochastic frontier industrial structure 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 2015 Journal Article http://hdl.handle.net/20.500.11937/18095 10.1080/00036846.2015.1013614 Routledge fulltext |
| spellingShingle | agglomeration economies firm-level technical efficiency stochastic frontier industrial structure Widodo, W. Salim, Ruhul Bloch, Harry The effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from Indonesia |
| title | The effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from Indonesia |
| title_full | The effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from Indonesia |
| title_fullStr | The effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from Indonesia |
| title_full_unstemmed | The effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from Indonesia |
| title_short | The effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from Indonesia |
| title_sort | effects of agglomeration economies on technical efficiency of manufacturing firms: evidence from indonesia |
| topic | agglomeration economies firm-level technical efficiency stochastic frontier industrial structure |
| url | http://hdl.handle.net/20.500.11937/18095 |