Title : Impact of Spillover of Foreign Investment on the Productivity of the Medium-High Technology Manufacturing Industry in Indonesia
Authors :
- Samuel Kharis Harianto
- Dyah Wulan Sari
Department : Economics
Journal Name : Journal of Economic and Business
Kinds of Journal : Sinta 3
Keywords : Productivity, Horizontal Spillovers, Forward Spillovers, Backward Spillovers, Indonesian Manufacturing Industries.
ABSTRACT
This study examines the impact of foreign presence in the medium-high and high technology manufacturing industry in Indonesia. Using a balaced panel data that consists of 2,397 firms and in the year of 2010-2014, the data was estimated using the multiple regression method. The results show that there is positive spillover when local and foreign firms are in the same industry. Conversly, in different industries, negative spillover occurs in forward linkage when local firms buy the output of foreign firms and no spillover occurs in backward linkage when local firms become the suppliers of foreign firms. The Indonesian government must assure that foreign investment policies must be benefits the domestic compans, considering there are some potential losses for domestic enterprises by the presence of foreigign direct investment in the domestic market.
For details : https://repository.unair.ac.id/114055/1/dyyah%20wulans_artikel406.pdf