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The Impact of foreign investment on firms performance : Indonesia after the 2007 FDI reform
Foreign Direct Investment plays a crucial role in the Indonesian economy. The new FDI law passed in 2007 serves a new milestone on the Indonesian FDI regime. As the country implements the new regulation, the impact of foreign investment to firm performance becomes an interesting subject. This paper aims to estimate the foreign investment effect on firms? productivity and the contribution of the new FDI law in Indonesia. This study employs a combination of Propensity Score Matching (PSM) and Difference-in-Differences (DiD) methods to eliminate endogeneity problems and to examine causality. We find that foreign investment increases firms? contribution in terms of tax and employment but there is no significant change in firms? productivity after the new FDI law came into force. This result implies that foreign investors might have picked domestic firms that are already productive; and that other firms need to increase their level of attractiveness while policymakers need to improve the investment climate in order to attract more FDI..14/07/2021
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| EK 1649 | PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | Depok: Fakultas Ekonomi dan Bisnis Universitas Indonesia 2021 |
|---|---|
| Edisi | - |
| Subjek | Foreign investment Firm performance FDI |
| ISBN/ISSN | - |
| Klasifikasi | - |
| Deskripsi Fisik | ix, 28p; chart, tables, graphics, ills; 29cm |
| Info Detail Spesifik | - |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas | Tidak Ada Data |