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The Impact of Special Economic Zones and Government Intervention on Firm Productivity: The Case of Batam, Indonesia

Aritenang, Adiwan F. - ; Chandramidi, Aryani N. - ;

Various studies have explored the effects of industrial agglomeration and special economic zones (SEZs) in Asia, but there has been a lack of data-driven analysis of SEZ performance. This paper provides a case study on Batam, which has been developed as an SEZ through government-to-government (G2G) cooperation, offering lessons for other developing countries. The study examines the effects of industrial zones, foreign investment and government intervention on firm productivity, using an ex-post evaluation method and econometric models. The paper does not find conclusive evidence that Batam’s status as an SEZ affects firm productivity and growth. Although firm agglomeration proves beneficial for firm productivity, it is not clear that SEZ policy has driven this productivity. The paper argues that government policies should stimulate innovation and inter-firm cooperation to increase knowledge spillovers and technology transfer instead of focusing on attracting investment.


Ketersediaan

Call NumberLocationAvailable
PSB lt.2 - Karya Akhir (Majalah)1
PenerbitJakarta: Centre for Strategic and International Studies 2020
EdisiVol 56, No. 2, 2020
SubjekGovernment intervention
Special economic zones
Firm productivity
ISBN/ISSN1472-7234
KlasifikasiNONE
Deskripsi Fisik265 p.
Info Detail SpesifikBulletin of Indonesian Economic Studies
Other Version/RelatedTidak tersedia versi lain
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  • The Impact of Special Economic Zones and Government Intervention on Firm Productivity: The Case of Batam, Indonesia

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