Advanced

Foreign Direct Investment and Value Added in Indonesia

Sjöholm, Fredrik LU (2016) In Working Papers 2016(31).
Abstract
Foreign Direct Investment (FDI) has increased in importance over the last decades, globally as well as in Indonesia. We examine how such inflows of FDI affects value added in Indonesia. The effect is positive: foreign firms generate relatively high levels of value added and they also seem to have a positive impact on value added in local firms. Moreover, FDI contribute to a structural change of the economy towards more high-value added activities. High value added could lead to increased investments and higher tax revenues for the government. High value added could also benefit labor through higher wages, an effect that is empirically confirmed in Indonesia.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
foreign direct investment, multinational firms, value added, industrial development, F23, F61, F63
in
Working Papers
volume
2016
issue
31
pages
36 pages
publisher
Department of Economics, Lund University
language
English
LU publication?
yes
id
786d51e3-c981-4371-b98d-0a80163f3d2e
alternative location
http://swopec.hhs.se/lunewp/abs/lunewp2016_031.htm
date added to LUP
2016-12-28 09:52:45
date last changed
2017-10-11 14:38:21
@misc{786d51e3-c981-4371-b98d-0a80163f3d2e,
  abstract     = {Foreign Direct Investment (FDI) has increased in importance over the last decades, globally as well as in Indonesia. We examine how such inflows of FDI affects value added in Indonesia. The effect is positive: foreign firms generate relatively high levels of value added and they also seem to have a positive impact on value added in local firms. Moreover, FDI contribute to a structural change of the economy towards more high-value added activities. High value added could lead to increased investments and higher tax revenues for the government. High value added could also benefit labor through higher wages, an effect that is empirically confirmed in Indonesia.},
  author       = {Sjöholm, Fredrik},
  keyword      = {foreign direct investment,multinational firms,value added,industrial development,F23,F61,F63},
  language     = {eng},
  month        = {11},
  note         = {Working Paper},
  number       = {31},
  pages        = {36},
  publisher    = {Department of Economics, Lund University },
  series       = {Working Papers},
  title        = {Foreign Direct Investment and Value Added in Indonesia},
  volume       = {2016},
  year         = {2016},
}