The Effects of Market Concentration, Trade, and FDI on Total Factor Productivity: Evidence from Indonesian Manufacturing Sector
Abstract:This study empirically examines the effects of exports, imports, market concentration, and foreign direct investment (FDI) on total factor productivity (TFP). We use a sample of 18,002 Indonesian manufacturing firms, categorized according to technology intensity of low, medium, and medium-high over 2010-2014. TFP and its sub-components, e.g., technical efficiency, technological progress, and scale effect, are estimated using a Malmquist Productivity Index (MPI). The estimation results indicate that market co… Show more
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