TY - JOUR
T1 - Determinants of exports performance
T2 - Evidence from Indonesian low-, medium-, and high-technology manufacturing industries
AU - Handoyo, Rossanto Dwi
AU - Ibrahim, Kabiru Hannafi
AU - Rahmawati, Yessi
AU - Faadhillah, Faizal
AU - Ogawa, Keiichi
AU - Kusumawardani, Deni
AU - See, Kok Fong
AU - Kumaran, Vikniswari Vija
AU - Gulati, Rachita
N1 - Publisher Copyright:
Copyright: © 2024 Handoyo et al. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
PY - 2024/1
Y1 - 2024/1
N2 - This study explores the determinants of the export performance of Indonesia’s low-, medium-, and high-technology manufacturing industries by focusing on the role of raw-material imports and technical efficiency. Micro firm-level data from 2010–2015 were utilized for the analysis in this study. The stochastic frontier analysis was employed to measure technical inefficiency and to determine its effect on export performance. Our findings indicate that in all categories of industry technical efficiency, raw materials imports, foreign direct investment (FDI), location, firm size, labour productivity, and concentration of industries were significant determinants of export performance. While high efficiency increases exports in low- and medium-technology firms, exports decrease in firms with high efficiency accompanied by high imports, FDI, size, and labour productivity. Furthermore, in high-technology industries, efficiency reduces exports and again increases them when mediated by a concentration of industries and location. The empirical strategy also supports the positive effect of imports on export performance in both industries, which also aligns with decreased exports in firms with high imports accompanied by high FDI, efficiency, labour productivity, the concentration of industries, and size. To this end, the study has implications for low-, medium-, and high-technology manufacturing that are mainly concerned with increasing exports.
AB - This study explores the determinants of the export performance of Indonesia’s low-, medium-, and high-technology manufacturing industries by focusing on the role of raw-material imports and technical efficiency. Micro firm-level data from 2010–2015 were utilized for the analysis in this study. The stochastic frontier analysis was employed to measure technical inefficiency and to determine its effect on export performance. Our findings indicate that in all categories of industry technical efficiency, raw materials imports, foreign direct investment (FDI), location, firm size, labour productivity, and concentration of industries were significant determinants of export performance. While high efficiency increases exports in low- and medium-technology firms, exports decrease in firms with high efficiency accompanied by high imports, FDI, size, and labour productivity. Furthermore, in high-technology industries, efficiency reduces exports and again increases them when mediated by a concentration of industries and location. The empirical strategy also supports the positive effect of imports on export performance in both industries, which also aligns with decreased exports in firms with high imports accompanied by high FDI, efficiency, labour productivity, the concentration of industries, and size. To this end, the study has implications for low-, medium-, and high-technology manufacturing that are mainly concerned with increasing exports.
UR - http://www.scopus.com/inward/record.url?scp=85181500571&partnerID=8YFLogxK
U2 - 10.1371/journal.pone.0296431
DO - 10.1371/journal.pone.0296431
M3 - Article
C2 - 38165859
AN - SCOPUS:85181500571
SN - 1932-6203
VL - 19
JO - PLoS ONE
JF - PLoS ONE
IS - 1 January
M1 - e0296431
ER -
