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All Journal JIET (Jurnal Ilmu Ekonomi Terapan) JDE (Journal of Developing Economies) MITRA: Jurnal Pemberdayaan Masyarakat Jurnal Ekonomi Indonesia Jurnal Ilmiah Wahana Pendidikan As-Sidanah : Jurnal Pengabdian Masyarakat Jurnal REP (Riset Ekonomi Pembangunan)
Yasin, Mohammad Zeqi
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Religion Humanities Economics, Econometrics & Finance Education Engineering Languange, Linguistic, Communication & Media Public Health Social Sciences Other

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Journal : Jurnal REP (Riset Ekonomi Pembangunan)

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TECHNOLOGICAL GAP AND FOREIGN DIRECT INVESTMENT SPILLOVERS IN INDONESIA Purwono, Rudi; Nur Hamzah, Ibnu; Yasin, Mohammad Zeqi
Jurnal REP (Riset Ekonomi Pembangunan) Vol. 9 No. 1 (2024): April 2024
Publisher : Universitas Tidar

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31002/rep.v9i1.1274

Abstract

This study investigates the relationship between the technology gap and Foreign Direct Investment (FDI) spillovers in Indonesia. This study employs Medium-Large Manufacturing Survey Data from Statistics Indonesia and employs the standard least-square method to estimate the correlation between the technological gap and industries’ productivity change between 2010 and 2015. This study groups industries based on their technological gap (i.e. the difference between domestic and foreign establishment productivity) into low-technology-gap, medium-technology-gap, and high-technology gap. This study reveals that the effect of the technological gap is higher in the moderate-technology-gap group of industries and that there is a statistically significant positive relationship in the low-technology-gap and high-technology-gap groups. This finding indicates that the technological gap matters for FDI spillovers in Indonesia’s manufacturing and it can explain why there is spillovers from FDI in several industries. This study also reveals that industries with higher level of technological gap tend to have higher variation in productivity change, thus it can explain the difference between industries absorptive capacity. Therefore, promoting FDI inflows in the country also fosters domestic firms’ productivity growth especially FDI with relatively higher technology than domestic firms. These findings also recommend that the government support domestic firms’ absorptive capacity after promoting FDI inflow into the country.
Co-Authors Adli, Fichrie Fachrowi Agustin, Almaidah Sela Amaliyah, Imroatul Anas, Mohammad Nizar Andriana, Fany Septi Anggraini, Desta Rezzy Arsita, Selly Aulia, Dita Az-Zahra, Fatima Dini, Widya Septian Dwiguna, Ratnanda Kresna Erlangga, Okyviandi Putra Galini, Jauhairina Hakim, M. Arief Rahman Hidayat, Moh. Masyrofi Imamah, Alfia Nur Imron Rosadi Insani, Shafalul Arnestya Nur Mariyatul Qibtiyah Maulana, Raden M. Yusron Muttaqiin, Ahyar Nur Hamzah, Ibnu Paramitha, Nasywa Natania Pramesty, Intan Budi Purwono, Rudi Qodri, Moh Alil Rachmania Nurul Fitri Amijaya Rofiki, Ainur Sanjaya, Adi Putra Sari, Dyah Wulan Setiawan, Ardhi Harry Siti Hidayah Syahdafi, Teuku M. Indra Triningsih, Jessica Septina Umami, M. Mifthakul Wonnink, Riqbal Fauzi Salman Yanuarisma, Intan Zaharani, Zhafira