International Journal of Scientific & Technology Research

IJSTR@Facebook IJSTR@Twitter IJSTR@Linkedin
Home About Us Scope Editorial Board Blog/Latest News Contact Us

IJSTR >> Volume 4 - Issue 3, March 2015 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

The Effect Of Manufacturing Characteristics On The Export Performance Of Manufacturing In Indonesia

[Full Text]



Prapdopo, Muhammad Yunus Zain, Madris, Sanusi Fattah



Keywords: Export Performance, Local Competitiveness, FDI, Specialization Level, Level of Diversity, Employment and Economic Growth



Abstract: The research aims are to estimate a structural model of the local competitiveness and to estimate FDI on the export performance of the manufacturing sector in Indonesia. This study uses data panel 33 provinces in Indonesia with time series 2004-2012. The results show that local competitiveness does not have direct effect on the performance of exports, but it affects through specialization level, the level of diversity, employment and economic growth. Furthermore, FDI has direct and significant effect on the export performance, but it does not affect through specialization level, the level of diversity, employment and economic growth.



[1] Andersson, Martin and Olof Ejermo. “Technological Specialization and the Composition of Export Flows – An analysis of Swedish Regions’ Trade with Europe”. DIME workshop on Dynamics of Knowledge Accumulation, Competitiveness, Regional Cohesion and Economic Policies, 2 – 4 February 2006, WIIW, Vienna. 2006.

[2] Antonietti, Roberto dan Giulio Cainelli. “International Linkages, Local Externalities, Innovation And Productivity A Structural Model Of Italian Manufacturing Firms”. working papers series WP 5/2009. Autonomous Province of Trento. Openloc. 2009.

[3] Ajmi, Ahdi N. Goodness C. Aye, Mehmet Balcilar, Rangan Gupta. “Causality Between Exports and Economic Growth in South Africa: Evidence from Linear and Nonlinear Tests”. Working Paper: 2013-39. 2013.

[4] Azam, Jean-Paul, Marie-Françoise Calmette, Catherine Loustalana, and Christine Maurel. “Domestic Competition and Export Performance of Manufacturing Firms in Côte d’Ivoire”. ARQADE-RPED lunch workshop in Toulouse and at the CSAE Conference 2000 in Oxford, WPS/2001-1. Oxford. 2001.

[5] Barrios, Salvador. Holger Goerg and Eric Strobl. “Foreign Direct Investment, Competition and Industrial Development in the Host Country”. Core Discussion Paper 2004/11. CORE, Université Catholique de Louvain, Belgium. 2004.

[6] Bernard, Andrew B. and J. Bradford Jensen. “Exporting and Productivity in the US”. The Center for Economic Studies. 2004.

[7] Bhattacharya, Mita. Jong-Rong Chen and V. Pradeep. “Productivity Spillovers in Indian Manufacturing Firms”. Department of Economics. ISSN 1441-5429. Discussion paper 30/08. JEL Classification: F21, O47, O53. Department of Economics, Monash University Australia. 2008.

[8] Blomstrom, Magnus and Ari Kokko. “The Economics of Foreign Direct Investment Incentives”. Working Paper 168. January 2003. JEL NO. J23, O12. 2003.

[9] Chandran V.G.R. “Export Specialization, Concentration And Intra-Industry Trade: Evidence From Malaysia”. Jurnal Akademik, Vol. 3 October 2003, pp. 99-111. Department of Economics, Faculty of Business Administration, University Technology of MARA. Johor. Malaysia. 2003.

[10] Clerides, Sofronis K., Saul Lach and James R. Tybout. “Is Learning by Exporting Important? Micro-Dynamic Evidence from Colombia, Mexico, and Morocco”. Volume 113, Issue 3. Pp. 903-947. Quarterly Journal of Economics. Social Sciences. Oxford Journals. 1998.

[11] Clougherty Joseph and Anming Zhang. “Domestic Rivalry and Export Performance: Theory and Evidence from International Airline Markets”. Discussion Paper SP II 2008 – 12, Wissenschaftszentrum Berlin. ISSN Nr. 0722 – 6748. 2008.

[12] Cortes, Bienvenido S. “Competition And Export Performance In Japan”. The International Journal of Economic Policy Studies. Volume 1. Pittsburg State University. Department of Economics, Finance and Banking. USA. 2006.

[13] Crozet, Matthieu. Thierry Mayer. and Jean-Louis Mucchielli. “How Do Firms Agglomerate? A Study of FDI in France”. Regional Science and Urban Economics. 34 (2004) 27–54. JEL classification:F23; R3; R58 . www.elsevier.com/locate/econbase. 2004.

[14] Farhauer, Oliver and Alexandra Kröll, BAPuga. “Diversified Specialisation-Going One Step Beyond Regional Economics: Specialisation-Diversification Concept”. Jahrbuch Für Regionalwissenschaft. Volume 32, Number 1, 63-84, DOI: 10.1007/s10037-011-0063-9. Faculty of Economics, Lehreinheit für VWL,Passau University. 2011.

[15] Guimaraes, Paulo. Octavio Figueiredo and Douglas Woodward. “Agglomeration and the Location of Foreign Direct Investment in Portugal”. Journal of Urban Economics47,115-135 (2000). Article ID juec.1999.2138, available online at http://www.idealibrary.com. 2000.

[16] Hu, Ji-Xiang. “Domestic Competition, Firm Heterogeneity, and Export Behavior”. Guanghua School of Management, Peking University. No. 10728803-201010/02. PKU GSM Working Paper Series. 2010.

[17] Kim, Seong-Hee. Todd S. Pickton, and Shelby Gerking. “Foreign Direct Investment: Agglomeration Economies and Returns to Promotion Expenditures”. The Review of Regional Studies, Vol. 33, No. 1, 2003, pp. 61-72. 2003.

[18] Mishra, PK. “The Dynamics of Relationship Between Exports And Economic Growth In India”. International Journal of Economic Sciences and Applied Research 4 (2): 53-70. JEL Classification Code: C22, C32, F43. 2011.

[19] Nushiwat, M. “Exports and Economic Growth: A Re-Examination of the Causality Relation in Six Countries, 1981-2000”. Applied Econometrics and International Development, 8(2), 5-12. 2008.

[20] Poddar, Tushar. “Domestic Competition Spurs Exports: The Indian Example”. Middle East and Central Asia Department. IMF Working Paper. WP/04/173. JEL Classification Numbers: D21, F14, F23. 2004.

[21] Sjöholm, Fredrik. “Productivity Growth in Indonesia: The Role of Regional Characteristics and Direct Foreign Investment”. Working Paper in Economics and Finance No. 216. Stocholm School of Economics. 1998.

[22] Torayeh, Neveen M. “Manufactured Exports And Economic Growth In Egypt:Cointegration And Causality Analysis”. Applied Econometrics and International Development. Vol. 11-1. 2011.