Spillover Effects from Foreign Direct Investment on Firm-Level Productive Efficiency: The Importance of R&D

., Suyanto (2010) Spillover Effects from Foreign Direct Investment on Firm-Level Productive Efficiency: The Importance of R&D. Ekonomi dan Bisnis, 14 (2). pp. 76-96. ISSN 1410-9204

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Abstract

This study examines empirically the effects of foreign direct investment (FDI) on firm-level productive efficiency in Indonesian manufacturing. Utilizing the data from the Annual Survey of manufacturing industries between 1988 and 2000, the results confirm a positive spillover effect of FDI on technical efficiency level. An interesting finding appears when the observed firms are divided into two groups: firms with research and development (R&D) expenditure and those without R&D expenditure. The R&D firms receive higher magnitude of spillovers than those without R&D. This finding supports the argument that R&D is a key absorptive capacity for domestic firms to gain FDI spillover benefits.

Item Type: Article
Uncontrolled Keywords: Foreign Direct Investment, Spillover Effects, Productive-Efficiency Level
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Business and Economic > Department of Economic
Depositing User: Suyanto 3198
Date Deposited: 18 Nov 2015 02:18
Last Modified: 18 Nov 2015 02:18
URI: http://repository.ubaya.ac.id/id/eprint/26084

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