Productivity gains, technology spillovers and trade: Indonesian manufacturing, 1980-96

J. Jacob, H.C. Meister

Research output: Contribution to journalArticleAcademicpeer-review

13 Citations (Scopus)

Abstract

The importance of R&D spillovers for productivity growth has been well documented in the literature. While studies in the developed country context have focused extensively on sectoral linkages, research on North-South spillovers has largely been confined to the aggregate level. This paper assesses the contribution of international R&D spillovers to manufacturing performance in Indonesia at the sectoral level. Drawing on OECD and Indonesian data sources, we consider two distinct phases: a phase characterised by intense policy regulation (1980-87), followed by a phase of liberalisation and reform (1988-96). Our results indicate that international technology spillovers made a significant contribution to the performance of Indonesian manufacturing, especially after liberalisation. The contribution of technology spillovers to productivity change is influenced by sectoral characteristics and industrial market structure.
Original languageEnglish
Pages (from-to)37-56
JournalBulletin of Indonesian Economic Studies
Volume41
Issue number1
DOIs
Publication statusPublished - 2005

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