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Journal : East Java Economic Journal

POTENTIAL BACKWARD SPILLOVER FROM FOREIGN COMPANIES TO MSMEs IN EAST JAVA Dyah Wulan Sari
East Java Economic Journal Vol. 1 No. 1 (2017)
Publisher : Kantor Perwakilan Bank Indonesia Provinsi Jawa Timur

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (351.326 KB) | DOI: 10.53572/ejavec.v1i1.1

Abstract

The presence of foreign firms in a region can create spillovers to other firms, both within the intra-industries (industries itself) and inter-industries (other industries). Spillover from foreign firms can be in the form of technology transfer, efficiency improvement, managerial knowledge which ultimately is expected to increase productivity for other firms not only in large enterprises but also for micro small and medium enterprises (MSMEs). Hence, this paper aims to identify the potential backward spillover of foreign firms to MSMEs in East Java and the individual results show that the four highest backward spillovers values of foreign industries are industry of components and spare parts of the prime mover motor, industry of agricultural and forestry machinery and services for supporting, maintenance and repair, industry of pump and compressor and industry of measurement tools, manual regulator and testing. All of them are respectively located in Surabaya City, Pasuruan District, Pasuruan District and Mojekerto District. Furthermore, the general results show that the potential backward spillover exists in rubber, rubber goods and plastic goods industries as well as chemicals and goods from chemical material industries. The foreign firms which have highest backward spillovers are located in Pasuruan District, Mojekerto District, Sidoarjo District, Surabaya City and Gresik District. Therefore, the provincial government of East Java should immediately prepare and support both technically and financially to MSMEs in providing raw materials required by foreign firms based on the industrial classification and location results of this study. In addition, the provincial government of East Java can coordinate with the district governments in the areas of those foreign firms for preparing MSMEs in supplying raw materials. JEL Classification: F23, L60
CHANGES IN VERTICAL TRADE PATTERNS IN HIGH-TECHNOLOGY COMPANIES IN EAST JAVA Wenny Restikasari; Dyah Wulan Sari; Angga Erlando; Fery Dwi Riyanto
East Java Economic Journal Vol. 3 No. 2 (2019)
Publisher : Kantor Perwakilan Bank Indonesia Provinsi Jawa Timur

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (599.304 KB) | DOI: 10.53572/ejavec.v3i2.39

Abstract

This study aims to insvestigate the impact of vertical trade pattern as export intensity, vertical trade integration and two-way trade dummy to firm production capability. This study deals with firm level data of East Java high-tech manufacturing induesties, employs as generalized method of moments (GMM) approach to examine the most imprortant factor of a vertical trade phenomenom. In the full-sample, the result demonstrates that vertical trade integration and two-way trade are significant determinants on firm’s production while export intensity is not. In ordinary trader sub-sample, export intensity is a significant determinant of firm’s production, whereas in vertical trader sub-sample export intensity is not.