Do Local Suppliers and Local Buyers Benefited from Foreign Direct Investment?: Evidence from Indonesia

., Suyanto (2018) Do Local Suppliers and Local Buyers Benefited from Foreign Direct Investment?: Evidence from Indonesia. In: International Symposium on Management 15, 01 May 2018, Burapha, Thailand.

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Abstract

This study examines the impact of foreign direct investment on the local suppliers as well as on the local buyers in Indonesian manufacturing industries. The effect of FDI on local suppliers is tracked down using the backward effect on the efficiency performance and the effect on local buyers is evaluated through the forward effect on the technical efficiency. Stochastic Frontier Method is applied as the method of estimation on 3,318 firms for 13 year period (total 43,134 observations). The panel data are constructed using the survey of large and medium firms conducted by Indonesian Central Board of Statistik (BPS). The results show that the existence of foreign firms in Indonesian manufacturing sector reduce inefficiency of not only local firms in the same industries but also local suppliers and local buyers.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: foreign direct investment, local buyers, local suppliers, manufacturing industries Indonesia
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HC Economic History and Conditions
Divisions: Faculty of Business and Economic > Department of Economic
Depositing User: Suyanto 3198
Date Deposited: 13 Jul 2018 03:09
Last Modified: 13 Jul 2018 03:09
URI: http://repository.ubaya.ac.id/id/eprint/32667

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