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Revitalising Indonesia’s Manufacturing

Bibliographic Data

ID12824282
AuthorsMohammad Zulfan Tadjoeddin (0000-0002-4400-464X, Western Sydney University, corresponding author), Ilmiawan Auwalin (0000-0003-1520-1190, Airlangga University, corresponding author), Anis Chowdhury (Australian National University, corresponding author)
Year2017
Volume16
Issue1
Pages124-153
Publication date2017-01-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEuropean Journal of East Asian Studies (JOURNAL)
Journal identifiersISSN: 1568-0584 • E-ISSN: 1570-0615
PublisherBrill (PUBLISHER • NL)
DOI10.1163/15700615-01601003
OpenAlexW2558527230
LanguageEN
Citations received1
References cited8

In light of the continuing importance, but declining dynamism, of the manufacturing sector, this paper investigates trends in productivity at firm levels. It finds that labour productivity has been either stagnant or falling in labour-intensive manufacturing. The paper uses firm level cross-sectional and time series data and employs GMM techniques to estimate determinants of productivity. It finds that real wage is the most important variable that influences firm level productivity, followed by capital intensity. Contrary to the common perception, foreign ownership and export orientation are not found to have statistically significant influence on firm level productivity. This finding is consistent for firms of all sizes—large, medium, small and micro. This implies that Indonesia can use wages policy, as Singapore did during the late 1970s to mid-1980s, to upgrade its manufacturing to higher value-added activities

Business · Capital (architecture · Dynamism · Econometrics · Economics · Foreign direct investment · Foreign ownership · Geography · Instrumental variable · Labour economics · Macroeconomics · Manufacturing · Manufacturing sector · Productivity · Wage · Economic Growth and Productivity · Firm Innovation and Growth · Global trade and economics

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  • Wages and Unemployment

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Unique citing works1
Citations per year0,17
Citation span2020 - 2020 (1)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 1

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