Publication:
Can Open Service Sector FDI Policy Enhance Manufacturing Productivity? Evidence from Indonesia

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dc.contributor.authorDuggan, Victor
dc.contributor.authorRahardja, Sjamsu
dc.contributor.authorVarela, Gonzalo
dc.date.accessioned2014-02-12T16:05:19Z
dc.date.available2014-02-12T16:05:19Z
dc.date.issued2013-02
dc.description.abstractDrawing on the findings of recent research, this note examines the extent to which changes to policy restrictions on foreign direct investment (FDI) in the Indonesian service sector affected the performance of downstream manufacturers during 1997-2009. The analysis uncovers two important findings: first, that relaxing restrictions toward FDI in service sectors was associated with improvements in the perceived performance of those sectors, and second, more importantly, that this relaxation accounted for 8 percent of the total observed increase in manufacturers' total factor productivity (TFP) during this period. The results show that these TFP gains accrue disproportionately to those firms that are relatively more productive and that gains are related to the relaxation of restrictions in the transport as well as the electricity, gas, and water sectors. TFP gains are associated, in particular, with the relaxation of foreign equity limits, screening and prior approval requirements, but less so with discriminatory regulations that prevent multinationals from hiring key personnel from abroad.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/02/17291077/can-open-service-sector-fdi-policy-enhance-manufacturing-productivity-evidence-indonesia
dc.identifier.doi10.1596/17014
dc.identifier.urihttps://hdl.handle.net/10986/17014
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesEconomic premise;no. 106
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO SERVICES
dc.subjectACCESSIBILITY
dc.subjectACCOUNTING
dc.subjectAIR
dc.subjectAIR TRANSPORT
dc.subjectBUSINESS ACTIVITY
dc.subjectBUSINESS ENVIRONMENT
dc.subjectBUSINESS OPPORTUNITIES
dc.subjectBUSINESS SERVICES
dc.subjectCAPABILITIES
dc.subjectCOMMODITIES
dc.subjectCOMMUNICATIONS MEDIA
dc.subjectCONFIDENCE
dc.subjectDEVELOPING COUNTRIES
dc.subjectDOMESTIC MARKET
dc.subjectDOMESTIC PROVIDERS
dc.subjectDRIVING
dc.subjectDRIVING COSTS
dc.subjectECONOMIC DEVELOPMENT
dc.subjectELECTRICITY
dc.subjectENTERPRISE SURVEYS
dc.subjectEQUIPMENT
dc.subjectEXPORT MARKETS
dc.subjectFINANCIAL SERVICES
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN ENTRY
dc.subjectFOREIGN EQUITY
dc.subjectFOREIGN EXCHANGE
dc.subjectFOREIGN FIRMS
dc.subjectFOREIGN INVESTMENT
dc.subjectFOREIGN OWNERSHIP
dc.subjectFOREIGN PARTICIPATION
dc.subjectFREIGHT
dc.subjectFREIGHT SECTOR
dc.subjectGLOBAL MARKETPLACE
dc.subjectGLOBAL TRADE
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectGROWTH RATE
dc.subjectIMPORTANCE OF SERVICES
dc.subjectINCREASED COMPETITION
dc.subjectINNOVATION
dc.subjectINSURANCE
dc.subjectINTELLECTUAL PROPERTY
dc.subjectINTERNATIONAL BUSINESS
dc.subjectINTERNATIONAL TRADE
dc.subjectLIBERALIZATION
dc.subjectMANUFACTURING
dc.subjectMANUFACTURING INDUSTRIES
dc.subjectMARKET FAILURES
dc.subjectMONOPOLIES
dc.subjectMONOPOLY
dc.subjectMULTINATIONALS
dc.subjectOUTPUT
dc.subjectPENSION
dc.subjectPRIVATE SECTOR
dc.subjectPRIVATE SECTOR INVESTMENT
dc.subjectPRODUCTIVITY
dc.subjectQUALITY OF SERVICES
dc.subjectRADIO
dc.subjectREAL ESTATE
dc.subjectREGULATORY BODIES
dc.subjectREGULATORY ENVIRONMENT
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY REGIME
dc.subjectREGULATORY RESTRICTIONS
dc.subjectRESULT
dc.subjectRESULTS
dc.subjectROAD
dc.subjectSERVICE PROVIDERS
dc.subjectSERVICE QUALITY
dc.subjectSERVICE SECTOR
dc.subjectSERVICE SECTORS
dc.subjectSERVICES INPUTS
dc.subjectSERVICES LIBERALIZATION
dc.subjectSERVICES SECTOR
dc.subjectTECHNOLOGY TRANSFER
dc.subjectTELECOM
dc.subjectTELECOMMUNICATIONS
dc.subjectTELEVISION
dc.subjectTRADE IN SERVICES
dc.subjectTRADE POLICY REFORM
dc.subjectTRANSPORT
dc.subjectTRANSPORT SECTOR
dc.subjectTRANSPORT SECTORS
dc.subjectUNIVERSAL ACCESS
dc.subjectUSER
dc.subjectUSERS
dc.subjectUSES
dc.subjectVEHICLES
dc.subjectWORLD INVESTMENT REPORT
dc.subjectWORLD TRADE
dc.titleCan Open Service Sector FDI Policy Enhance Manufacturing Productivity? Evidence from Indonesiaen
dspace.entity.typePublication
okr.date.disclosure2013-02-14
okr.date.doiregistration2025-04-29T10:27:22.450425Z
okr.doctypePublications & Research::Brief
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2013/02/17291077/can-open-service-sector-fdi-policy-enhance-manufacturing-productivity-evidence-indonesia
okr.globalpracticeTransport and ICT
okr.globalpracticeGovernance
okr.globalpracticeTransport and ICT
okr.globalpracticeTrade and Competitiveness
okr.guid300941468267308210
okr.identifier.externaldocumentum000333037_20130214121603
okr.identifier.internaldocumentum17291077
okr.identifier.report75321
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/02/14/000333037_20130214121603/Rendered/PDF/753210BRI0EP1060Box374323B00PUBLIC0.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryIndonesia
okr.topicPrivate Sector Development::E-Business
okr.topicPrivate Sector Development::Emerging Markets
okr.topicTransport Economics Policy and Planning
okr.topicInternational Economics and Trade::Trade and Services
okr.topicPublic Sector Corruption and Anticorruption Measures
okr.topicPublic Sector Development
okr.topicTransport
okr.unitPREM Sector Department (EASPR)
okr.volume1 of 1
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