The impacts of foreign direct investment and export expansion on the performance of the high-tech manufacturing industry

This study investigates the impact of foreign direct investment and export expansion on firm performance. Using firmlevel data from the Indonesian high-tech manufacturing industry, we employ stochastic frontier analysis to determine firm efficiency. Our study provides evidence of negative backward...

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Main Authors: Dyah Wulan Sari,, Wenny Restikasari,, Ajija, Shochrul Rohmatul, Islamia, Haura Azzahra Tarbiyah, Muchtar, Darmawati
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2021
Online Access:http://journalarticle.ukm.my/18791/1/jeko_552-8-1.pdf
http://journalarticle.ukm.my/18791/
https://www.ukm.my/jem/issue/v55i2/
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spelling my-ukm.journal.187912022-06-23T08:21:01Z http://journalarticle.ukm.my/18791/ The impacts of foreign direct investment and export expansion on the performance of the high-tech manufacturing industry Dyah Wulan Sari, Wenny Restikasari, Ajija, Shochrul Rohmatul Islamia, Haura Azzahra Tarbiyah Muchtar, Darmawati This study investigates the impact of foreign direct investment and export expansion on firm performance. Using firmlevel data from the Indonesian high-tech manufacturing industry, we employ stochastic frontier analysis to determine firm efficiency. Our study provides evidence of negative backward and positive forward FDI spillovers on firms’ efficiency level. The results further show that foreign firms in the high-tech manufacturing industry are more efficient than local firms. Furthermore, a greater degree of fragmented trade integration is related to better performance among firm in the high-tech manufacturing industry. This indicates the significance of the production of component goods relative to the finished goods. In terms of the policy, the authority might need to consider whether the existence of FDI benefits local producers beyond promoting trading of component goods of the high-tech manufacturing industry. Penerbit Universiti Kebangsaan Malaysia 2021 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/18791/1/jeko_552-8-1.pdf Dyah Wulan Sari, and Wenny Restikasari, and Ajija, Shochrul Rohmatul and Islamia, Haura Azzahra Tarbiyah and Muchtar, Darmawati (2021) The impacts of foreign direct investment and export expansion on the performance of the high-tech manufacturing industry. Jurnal Ekonomi Malaysia, 55 (2). pp. 91-105. ISSN 0127-1962 https://www.ukm.my/jem/issue/v55i2/
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description This study investigates the impact of foreign direct investment and export expansion on firm performance. Using firmlevel data from the Indonesian high-tech manufacturing industry, we employ stochastic frontier analysis to determine firm efficiency. Our study provides evidence of negative backward and positive forward FDI spillovers on firms’ efficiency level. The results further show that foreign firms in the high-tech manufacturing industry are more efficient than local firms. Furthermore, a greater degree of fragmented trade integration is related to better performance among firm in the high-tech manufacturing industry. This indicates the significance of the production of component goods relative to the finished goods. In terms of the policy, the authority might need to consider whether the existence of FDI benefits local producers beyond promoting trading of component goods of the high-tech manufacturing industry.
format Article
author Dyah Wulan Sari,
Wenny Restikasari,
Ajija, Shochrul Rohmatul
Islamia, Haura Azzahra Tarbiyah
Muchtar, Darmawati
spellingShingle Dyah Wulan Sari,
Wenny Restikasari,
Ajija, Shochrul Rohmatul
Islamia, Haura Azzahra Tarbiyah
Muchtar, Darmawati
The impacts of foreign direct investment and export expansion on the performance of the high-tech manufacturing industry
author_facet Dyah Wulan Sari,
Wenny Restikasari,
Ajija, Shochrul Rohmatul
Islamia, Haura Azzahra Tarbiyah
Muchtar, Darmawati
author_sort Dyah Wulan Sari,
title The impacts of foreign direct investment and export expansion on the performance of the high-tech manufacturing industry
title_short The impacts of foreign direct investment and export expansion on the performance of the high-tech manufacturing industry
title_full The impacts of foreign direct investment and export expansion on the performance of the high-tech manufacturing industry
title_fullStr The impacts of foreign direct investment and export expansion on the performance of the high-tech manufacturing industry
title_full_unstemmed The impacts of foreign direct investment and export expansion on the performance of the high-tech manufacturing industry
title_sort impacts of foreign direct investment and export expansion on the performance of the high-tech manufacturing industry
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2021
url http://journalarticle.ukm.my/18791/1/jeko_552-8-1.pdf
http://journalarticle.ukm.my/18791/
https://www.ukm.my/jem/issue/v55i2/
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score 13.211869