Does foreign direct investment lead to productivity spillovers? Firm level evidence from Indonesia
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...
| Main Authors: | , , |
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| Format: | Journal Article |
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Pergamon
2009
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| Online Access: | http://hdl.handle.net/20.500.11937/27723 |
| _version_ | 1848752342152773632 |
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| author | Suyanto, Suyanto Salim, Ruhul Bloch, Harry |
| author_facet | Suyanto, Suyanto Salim, Ruhul Bloch, Harry |
| author_sort | Suyanto, Suyanto |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-14T08:07:06Z |
| format | Journal Article |
| id | curtin-20.500.11937-27723 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:07:06Z |
| publishDate | 2009 |
| publisher | Pergamon |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-277232018-03-29T09:08:01Z Does foreign direct investment lead to productivity spillovers? Firm level evidence from Indonesia Suyanto, Suyanto Salim, Ruhul Bloch, Harry total factor productivity growth frontier production function Malmquist index FDI spillovers 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. 2009 Journal Article http://hdl.handle.net/20.500.11937/27723 10.1016/j.worlddev.2009.05.009 Pergamon restricted |
| spellingShingle | total factor productivity growth frontier production function Malmquist index FDI spillovers Suyanto, Suyanto Salim, Ruhul Bloch, Harry Does foreign direct investment lead to productivity spillovers? Firm level evidence from Indonesia |
| title | Does foreign direct investment lead to productivity spillovers? Firm level evidence from Indonesia |
| title_full | Does foreign direct investment lead to productivity spillovers? Firm level evidence from Indonesia |
| title_fullStr | Does foreign direct investment lead to productivity spillovers? Firm level evidence from Indonesia |
| title_full_unstemmed | Does foreign direct investment lead to productivity spillovers? Firm level evidence from Indonesia |
| title_short | Does foreign direct investment lead to productivity spillovers? Firm level evidence from Indonesia |
| title_sort | does foreign direct investment lead to productivity spillovers? firm level evidence from indonesia |
| topic | total factor productivity growth frontier production function Malmquist index FDI spillovers |
| url | http://hdl.handle.net/20.500.11937/27723 |