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Technology Gap, Competition and Spillovers from Direct Foreign Investment: Evidence From Establishment Data

Sjöholm, Fredrik LU (1999) In Journal of Development Studies 36(1). p.53-73
Abstract
Direct foreign investment (DFI) has been argued to be an important channel for international technology diffusion. This has led to extensive liberalisation of DFI regimes in many developing countries, including in Indonesia. Using detailed micro-data from the Indonesian manufacturing sector; we examine the effect on productivity from DFI. The results show DFI to benefit locally-owned establishments, but the effect differs between groups of industries. Spillovers from DFI are found in sectors with a high degree of competition. Moreover it seems that the larger the technology gap between domestic and foreign establishments, the larger the spillovers.
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author
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Indonesia, Efficiency, Protection, Industry, Policy
in
Journal of Development Studies
volume
36
issue
1
pages
53 - 73
publisher
Taylor & Francis
external identifiers
  • scopus:0242701717
ISSN
0022-0388
DOI
10.1080/00220389908422611
language
English
LU publication?
no
id
070f79c0-b1d0-4fb4-ae84-7fa2ec33139b
date added to LUP
2017-10-12 17:49:37
date last changed
2017-11-05 05:23:40
@article{070f79c0-b1d0-4fb4-ae84-7fa2ec33139b,
  abstract     = {Direct foreign investment (DFI) has been argued to be an important channel for international technology diffusion. This has led to extensive liberalisation of DFI regimes in many developing countries, including in Indonesia. Using detailed micro-data from the Indonesian manufacturing sector; we examine the effect on productivity from DFI. The results show DFI to benefit locally-owned establishments, but the effect differs between groups of industries. Spillovers from DFI are found in sectors with a high degree of competition. Moreover it seems that the larger the technology gap between domestic and foreign establishments, the larger the spillovers.},
  author       = {Sjöholm, Fredrik},
  issn         = {0022-0388},
  keyword      = {Indonesia,Efficiency,Protection,Industry,Policy},
  language     = {eng},
  number       = {1},
  pages        = {53--73},
  publisher    = {Taylor & Francis},
  series       = {Journal of Development Studies},
  title        = {Technology Gap, Competition and Spillovers from Direct Foreign Investment: Evidence From Establishment Data},
  url          = {http://dx.doi.org/10.1080/00220389908422611},
  volume       = {36},
  year         = {1999},
}