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Journal : JDE (Journal of Developing Economies)

The Effect of Foreign Direct Investment Spillover on The Level of Technical Efficiency in Large and Medium Manufacturing Industry in East Java Widyananda, Ahmad Oktabri; Sari, Dyah Wulan
Journal of Developing Economies Vol. 5 No. 1 (2020)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v5i1.15646

Abstract

Foreign Direct Investment (FDI) takes an important role in the development process, especially in developing countries. The purpose of this study is to examine and analyze FDI spillover on the level of technical efficiency in the large and medium manufacturing industry in East Java. This study uses a time-varying stochastic frontier approach for firm-level panel data of the East Java manufacturing industry. The results show that all factors in this study affect the level of technical efficiency of large and medium industries in East Java. Variable foreign share, FDI horizontal spillover, and firm size have a positive influence on the technical efficiency of the industry. Whereas the variable FDI backward spillover, FDI forward spillover and the level of market concentration negatively affect the level of technical efficiency of the industry. Finally, it's needed to build synergies and sustainable relationships between products produced by domestic and foreign firms. Thus, the presence of foreign firms in East Java could have a positive impact on improving the technical efficiency of the domestic industry both at the upstream and downstream levels. Keywords: Foreign Direct Investment Spillover, Technical Efficiency, East Java Industry JEL: F21, L60, D24
Technical Efficiency of the Indonesian Textile and Textile Product Industry Amaliyah, Imroatul; Sari, Dyah Wulan; Yasin, Mohammad Zeqi
Journal of Developing Economies Vol. 7 No. 1 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i1.23738

Abstract

This study investigates the determinants of the Indonesian textile and textile product (TPT) industry's technical efficiency. Employing the rich, balanced panel data of 3,365 firms over 2007-2013 with a non-parametric approach to the Data Envelopment Analysis (DEA) Bootstrapping and Tobit regression, this study discovers that the production operations are inefficient, especially the companies upstream. The improvement of technical efficiency is driven by firm size, market concentration, foreign ownership, and exports. An intriguing finding is that the capital-labour ratio negatively impacts efficiency, implying higher capital for production will make the production even more inefficient. The machines in most TPT firms are old, so larger capital may not help. This study recommends the government design policies that support the machinery restructuration so that capital can support production efficiency.
Black Economy in Madura, an Electricity Consumption Approach Jakfar Sadik; Sari, Dyah Wulan; Titik, Crysanti S
Journal of Developing Economies Vol. 8 No. 1 (2023)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v8i1.42839

Abstract

This research aims to provide information for the government, stakeholders, and society on the quantity and types of economic activities on Madura Island that are undetected by the State Tax System. The method used in this research is the electricity consumption approach, i.e., comparing the total income of four regencies in Madura Island (Gross Regional Domestic Product) to the total electricity consumption during the 2016-2021 period. By this approach, the amount of Black Economy in four regencies in Madura Island compared to the total economic activities during 2016-2021 can be discovered, as well as the types of economic activities indicated as Black Economy.