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FDI spillovers in Indoensia's chemical industry : A stochastic production frontier analysis

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There has been increasing role of Foreign Direct Investment (FDI) in developindg countries since the 1980s. Interestingly, FDI is not only expected to bring direct effects, but also indierect effects or "spillovers" to a hosti economy. This paper aims to investigate FDI spillovers in the Indonesia's chemical industry, whether domestic firms benefit or not from foreign investmrnt. A stochastic production frontier approach is adopted to a firm level panel data for the periode of 1998-2000. There are three important findings. First, there is a clear hierarchy of technical efficiency of chemical firms based on their ownership satatus. Foreign owned firms have the highest level of technical efficiency, followed by joint ventures and domestic firms. Second, even though this paper confirms positive spillovers in the industry, the magnitude is relatively small. It shwos that the Indonesian chemica industry has not yet been also to take full advantage of foreign presence. Third, a wider technology gap between domestic and foreign firms results in a higher spillovers. Findings of this paper imply that more FDI inflow into the Indonesia's chemical industry may benafit the industry. However, understanding the process of how the foreign presence affects domestic firms is important to take full advantage of the foreign presence. .Baca di tempat

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Ketersediaan

Call Number	Location	Available
EFI-54-1-2006	PSB lt.dasar - Pascasarjana	1

Penerbit	Lembaga Penyelidikan Ekonomi dan Masyarakat FEUI.,
Edisi	-
Subjek	Indonesia Stochastic Foreign direct investment Chemical industry Spillovers Frontier Prodcution
ISBN/ISSN	0126155X
Klasifikasi	-
Deskripsi Fisik	-
Info Detail Spesifik	-
Other Version/Related	Tidak tersedia versi lain
Lampiran Berkas	Tidak Ada Data