Foreign direct investment spillovers and technical efficiency in the Indonesian pharmaceutical sector: firm level evidence
The spillovers of Foreign Direct Investment (FDI) on domestic firms’ performances have been highly debated for many years. This article contributes to this debate by analysing spillovers effects on technical efficiency of Indonesian pharmaceutical sector using a unique unbalanced panel of highly dis...
| Main Authors: | , |
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| Format: | Journal Article |
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Taylor & Francis
2011
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| Online Access: | http://hdl.handle.net/20.500.11937/31866 |
| _version_ | 1848753503347933184 |
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| author | Suyanto, Suyanto Salim, Ruhul |
| author_facet | Suyanto, Suyanto Salim, Ruhul |
| author_sort | Suyanto, Suyanto |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | The spillovers of Foreign Direct Investment (FDI) on domestic firms’ performances have been highly debated for many years. This article contributes to this debate by analysing spillovers effects on technical efficiency of Indonesian pharmaceutical sector using a unique unbalanced panel of highly disaggregated (at five-digit International Standard Industrial Classification (ISIC)) 210 firms over the period 1990–1995 (1001 observations). The Stochastic Production Frontier (SPF) and the Data Envelopment Analysis (DEA) based on Malmquist Productivity Indices (MPI) have been used to test the spillovers effects of FDI on technical efficiency. The empirical results from the SPF show that foreign firms are more efficient than domestic competitors, and the presence of the former increases the inefficiency of the latter. Similarly the results from the MPI demonstrate that FDI has a negative and significant impact on technical efficiency changes in domestic competitors, but generate positive spillovers to domestic suppliers. |
| first_indexed | 2025-11-14T08:25:33Z |
| format | Journal Article |
| id | curtin-20.500.11937-31866 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:25:33Z |
| publishDate | 2011 |
| publisher | Taylor & Francis |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-318662019-02-19T04:27:34Z Foreign direct investment spillovers and technical efficiency in the Indonesian pharmaceutical sector: firm level evidence Suyanto, Suyanto Salim, Ruhul FDI spillovers Malmquist productivity index stochastic frontier technical efficiency The spillovers of Foreign Direct Investment (FDI) on domestic firms’ performances have been highly debated for many years. This article contributes to this debate by analysing spillovers effects on technical efficiency of Indonesian pharmaceutical sector using a unique unbalanced panel of highly disaggregated (at five-digit International Standard Industrial Classification (ISIC)) 210 firms over the period 1990–1995 (1001 observations). The Stochastic Production Frontier (SPF) and the Data Envelopment Analysis (DEA) based on Malmquist Productivity Indices (MPI) have been used to test the spillovers effects of FDI on technical efficiency. The empirical results from the SPF show that foreign firms are more efficient than domestic competitors, and the presence of the former increases the inefficiency of the latter. Similarly the results from the MPI demonstrate that FDI has a negative and significant impact on technical efficiency changes in domestic competitors, but generate positive spillovers to domestic suppliers. 2011 Journal Article http://hdl.handle.net/20.500.11937/31866 10.1080/00036846.2011.605554 Taylor & Francis fulltext |
| spellingShingle | FDI spillovers Malmquist productivity index stochastic frontier technical efficiency Suyanto, Suyanto Salim, Ruhul Foreign direct investment spillovers and technical efficiency in the Indonesian pharmaceutical sector: firm level evidence |
| title | Foreign direct investment spillovers and technical efficiency in the Indonesian pharmaceutical sector: firm level evidence |
| title_full | Foreign direct investment spillovers and technical efficiency in the Indonesian pharmaceutical sector: firm level evidence |
| title_fullStr | Foreign direct investment spillovers and technical efficiency in the Indonesian pharmaceutical sector: firm level evidence |
| title_full_unstemmed | Foreign direct investment spillovers and technical efficiency in the Indonesian pharmaceutical sector: firm level evidence |
| title_short | Foreign direct investment spillovers and technical efficiency in the Indonesian pharmaceutical sector: firm level evidence |
| title_sort | foreign direct investment spillovers and technical efficiency in the indonesian pharmaceutical sector: firm level evidence |
| topic | FDI spillovers Malmquist productivity index stochastic frontier technical efficiency |
| url | http://hdl.handle.net/20.500.11937/31866 |