TY - JOUR
T1 - The impacts of foreign direct investment and export expansion on the performance of the high-tech manufacturing industry
AU - Sari, Dyah Wulan
AU - Restikasari, Wenny
AU - Ajija, Shochrul Rohmatul
AU - Islamia, Haura Azzahra Tarbiyah
AU - Muchtar, Darmawati
N1 - Publisher Copyright:
© 2021 Penerbit Universiti Kebangsaan Malaysia. All rights reserved.
PY - 2021
Y1 - 2021
N2 - This study investigates the impact of foreign direct investment and export expansion on firm performance. Using firmlevel data from the Indonesian high-tech manufacturing industry, we employ stochastic frontier analysis to determine firm efficiency. Our study provides evidence of negative backward and positive forward FDI spillovers on firms' efficiency level. The results further show that foreign firms in the high-tech manufacturing industry are more efficient than local firms. Furthermore, a greater degree of fragmented trade integration is related to better performance among firm in the high-tech manufacturing industry. This indicates the significance of the production of component goods relative to the finished goods. In terms of the policy, the authority might need to consider whether the existence of FDI benefits local producers beyond promoting trading of component goods of the high-tech manufacturing industry.
AB - This study investigates the impact of foreign direct investment and export expansion on firm performance. Using firmlevel data from the Indonesian high-tech manufacturing industry, we employ stochastic frontier analysis to determine firm efficiency. Our study provides evidence of negative backward and positive forward FDI spillovers on firms' efficiency level. The results further show that foreign firms in the high-tech manufacturing industry are more efficient than local firms. Furthermore, a greater degree of fragmented trade integration is related to better performance among firm in the high-tech manufacturing industry. This indicates the significance of the production of component goods relative to the finished goods. In terms of the policy, the authority might need to consider whether the existence of FDI benefits local producers beyond promoting trading of component goods of the high-tech manufacturing industry.
KW - Export expansion
KW - Foreign direct investment
KW - High-tech manufacturing industry
KW - Stochastic frontier analysis
UR - http://www.scopus.com/inward/record.url?scp=85117761885&partnerID=8YFLogxK
U2 - 10.17576/JEM-2021-5502-8
DO - 10.17576/JEM-2021-5502-8
M3 - Article
AN - SCOPUS:85117761885
SN - 0127-1962
VL - 55
SP - 91
EP - 105
JO - Jurnal Ekonomi Malaysia
JF - Jurnal Ekonomi Malaysia
IS - 2
ER -