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Foreign direct investment and Growth in East Asia : lessons for Indonesia

Lipsey, Robert E and Sjöholm, Fredrik LU (2011) In Bulletin of Indonesian Economic Studies 47(1). p.35-63
Abstract
Foreign direct investment (FDI) has been important in the growth and global integration of developing economies. Both Northeast and Southeast Asia, especially the latter, have been part of this development, with increasing inflows of FDI and greater foreign participation in local economies. However, Indonesia has been an outlier within the region. Inflows of FDI have been lower to Indonesia than to other countries, especially in manufacturing, and they have been lower than could be expected from Indonesia's size, population and other country characteristics. We show that the inflows that have occurred have benefited Indonesia, and use the East Asian experience to identify measures that are likely to increase these flows. A relatively poor... (More)
Foreign direct investment (FDI) has been important in the growth and global integration of developing economies. Both Northeast and Southeast Asia, especially the latter, have been part of this development, with increasing inflows of FDI and greater foreign participation in local economies. However, Indonesia has been an outlier within the region. Inflows of FDI have been lower to Indonesia than to other countries, especially in manufacturing, and they have been lower than could be expected from Indonesia's size, population and other country characteristics. We show that the inflows that have occurred have benefited Indonesia, and use the East Asian experience to identify measures that are likely to increase these flows. A relatively poor business environment, inefficient government institutions, low levels of education and poor infrastructure all seem to be important explanations for the low inflows of FDI to Indonesia. (Less)
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author
publishing date
type
Contribution to journal
publication status
published
subject
in
Bulletin of Indonesian Economic Studies
volume
47
issue
1
pages
29 pages
publisher
Taylor & Francis
external identifiers
  • scopus:79952687759
ISSN
0007-4918
DOI
10.1080/00074918.2011.556055
language
English
LU publication?
no
id
474b1790-dbe5-4e45-b52e-7e8bfcbd1c4e
date added to LUP
2017-10-06 15:56:20
date last changed
2017-11-12 04:35:41
@article{474b1790-dbe5-4e45-b52e-7e8bfcbd1c4e,
  abstract     = {Foreign direct investment (FDI) has been important in the growth and global integration of developing economies. Both Northeast and Southeast Asia, especially the latter, have been part of this development, with increasing inflows of FDI and greater foreign participation in local economies. However, Indonesia has been an outlier within the region. Inflows of FDI have been lower to Indonesia than to other countries, especially in manufacturing, and they have been lower than could be expected from Indonesia's size, population and other country characteristics. We show that the inflows that have occurred have benefited Indonesia, and use the East Asian experience to identify measures that are likely to increase these flows. A relatively poor business environment, inefficient government institutions, low levels of education and poor infrastructure all seem to be important explanations for the low inflows of FDI to Indonesia.},
  author       = {Lipsey, Robert E and Sjöholm, Fredrik},
  issn         = {0007-4918},
  language     = {eng},
  number       = {1},
  pages        = {35--63},
  publisher    = {Taylor & Francis},
  series       = {Bulletin of Indonesian Economic Studies},
  title        = {Foreign direct investment and Growth in East Asia : lessons for Indonesia},
  url          = {http://dx.doi.org/10.1080/00074918.2011.556055},
  volume       = {47},
  year         = {2011},
}