Friend or Foe? Revealing R&D spillovers from FDI in Indonesia

Gender diversity, foreign direct investment spillovers, and productivity: Unraveling the role of female workers in Indonesia

“…The next observation is the spillover impact in the industry group based on technology intensity, following the Indonesia 4.0 roadmap's emphasis on technological adoption (Yasin et al, 2024). This study also examines whether the participation of female workers in MNCs improves productivity to different extents in high-and low-technology industries.…”

“…In contrast, labor-intensive industries (low-tech) generally derive greater benefits from the direct effects of FDI, as opposed to spillovers or externalities. Such phenomena are likely linked to the low absorption capability of low-tech sectors in comparison with high-tech sectors, where the immediate and tangible impact of FDI is more pronounced (Rojec & Knell, 2018;Suyanto et al, 2012;Yasin et al, 2024).…”

“…This implies that in the medium-tech sector, the presence of MNCs may be associated with adverse externalities in firm productivity. Possible reasons include MNCs crowding out the market for capital and labor, outperforming domestic companies, or leveraging superior technology, management, networks, and knowledge to expand their market share (Yasin et al, 2024). Furthermore, female worker participation is inversely correlated with productivity in medium-technology industries.…”

“…For wages, the results are consistent (positive and significant), implying that an increase in wages improves TFP. A plausible explanation for this is that workers' absorptive capacity is reflected in their wage levels (Sari et al, 2016;Yasin et al, 2022Yasin et al, , 2024. The theoretical assumption was that wage premiums are offered to skilled workers who can rapidly adopt advanced technologies to boost productivity.…”