5th European International Conference on Industrial Engineering and Operations Management

FDI Productivity Spillovers and Technology Gap: Case Study of LMEs in Indonesia

Yuhana Astuti
Publisher: IEOM Society International
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Track: Industrial Management
Abstract

All countries are faced with various challenges in competing with other countries globally. Encouraging industries to increase their productivity is a significant challenge. Foreign Direct Investment (FDI) through Multinational Enterprises (MNEs) is one of the important channels and a strong catalyst for achieving national economic development. This paper examines the technology gap's impact on domestic firms' labor productivity. This study uses a panel dataset of Indonesian Large and Medium Enterprises (LMEs) in 24 industries between 2010 and 2015. The fixed effect estimation method has been used with different model specifications. The results reveal a technology gap in which varying roles influence spillover depending on the industry being considered.

 

Keywords  

FDI, Labor productivity, Spillovers, Technology gap, Indonesia

Published in: 5th European International Conference on Industrial Engineering and Operations Management, Rome, Italy

Publisher: IEOM Society International
Date of Conference: July 26-28, 2022

ISBN: 978-1-7923-9161-3
ISSN/E-ISSN: 2169-8767