Jurnal Ilmiah Administrasi Publik
Vol. 6 No. 2 (2020): Jurnal Ilmiah Administrasi Publik (JIAP)

Foreign Direct Investment and Wage Spillovers in Indonesia

Sultoni, Sultoni (Unknown)

Article Info

Publish Date
25 Aug 2020

Abstract

This paper investigates the effect of Foreign Direct Investment (FDI) inflows on wage level paid by private domestic firms in Indonesia’s manufacturing sector. The previous literature focuses on horizontal linkages only. We develop this study by examining the spillover through horizontal and vertical channels. We find that there is strong evidence of horizontal and vertical wage spillovers from foreign to local firms in Indonesian manufacturing. However, after controlling for some firm characteristics, which are technology intensity level and firm size, we find that although vertical wage spillovers exist irrespective of the firm characteristics, horizontal spillovers show different results. This spillover is not present in relatively low technology level firms.

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Journal Info
Jurnal Ilmiah Administrasi Publik
Website

Abbrev

jiap

Publisher

Universitas Brawijaya

Subject

Decision Sciences, Operations Research & Management Environmental Science Social Sciences

Description

Jurnal Ilmiah Administrasi Publik with ISSN 2302-2698 and online ISSN 2503-2887. JIAP is published three times a year (period 1 : April to July, period 2: August to November, period 3: December to March). This journal contains scientific articles on public administration science written in two ...