Title : The Effect of Trade and Foreign Ownership On The Technical Efficiency of Indonesia's Textile Industry
Authors:
- Rossanto Dwi Handoyo
- Katarina Eriandika Dewayanti
- Finished Sarmidi
- Kabiru Hannafi Ibrahim
- Angga Erlando
- Tri Haryanto
Department : Economics
Journal Name : Asian Economic and Financial Review Kinds of Journal: Q1
Keywords : Apparel industry, technical efficiency, trade, foreign ownership, maximum likelihood estimation, stochastic frontier analysis.
Abstract:
This Study Empirical Examines The Effect of Trade (Exports and Imports) and Foreign Ownership On The Technical Efficiency of Apparel Industry in Indonesia from 2007 to 2013. Data Panel and The Maximum Lihood Estimation Approach to The Stochastic Frontier Analysis. While controlling for the spillover effect and firm size in the inefficiency model of the apparel industry, our empirical strategy indicates that the apparel industry has not been reached the maximum level of technical efficiency. Export Participation, Foreign Ownership, and Spillover Assert An Increasing and Significant Influence on Technical Efficiency, While The Import of Raw Materials Asserts a Negative and Significant Effect. Additionally, the mediation effect of exports and foreign ownership, and foreign ownership and firm size, increased the industry's technical efficiency, while the mediation effect of the firm size and imports, and firm size and spillover, reduces the industry's technical efficiency. Recommendations based on the Findings are outlocated for policymakers.
For details : https://archive.aessweb.com/index.php/5002/article/view/4556
