Publication:
Service Sector Reform and Manufacturing Productivity : Evidence from Indonesia

dc.contributor.authorDuggan, Victor
dc.contributor.authorRahardja, Sjamsu
dc.contributor.authorVarela, Gonzalo
dc.date.accessioned2013-04-11T16:30:29Z
dc.date.available2013-04-11T16:30:29Z
dc.date.issued2013-01
dc.description.abstractThis paper examines the extent to which policy restrictions on foreign direct investment in the Indonesian service sector affected the performance of manufacturers over the period 1997-2009. It uses firm-level data on manufacturers' total factor productivity and the OECD's foreign direct investment Regulatory Restrictiveness Index, combined with data from Indonesia s input-output tables regarding the intensity with which manufacturing sectors use services inputs. Controlling for firm-level fixed effects and other relevant policy indicators, it finds, first, that relaxing policies toward foreign direct investment in the service sector was associated with improvements in perceived performance of the service sector. Second, it finds that this relaxation in service sector foreign direct investment policies accounted for 8 percent of the observed increase in manufacturers' total factor productivity over the period. The total factor productivity gains accrue disproportionately to those firms that are relatively more productive, and that gains are related to the relaxation of restrictions in both the transport and electricity, gas, and water sectors. Total factor productivity 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 abroad.en
dc.identifierhttp://documents.worldbank.org/curated/en/2013/01/17206424/service-sector-reform-manufacturing-productivity-evidence-indonesia
dc.identifier.doi10.1596/1813-9450-6349
dc.identifier.urihttps://hdl.handle.net/10986/13149
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 6349
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectAIR
dc.subjectAIR TRANSPORT
dc.subjectAUDITORS
dc.subjectBANK INDONESIA
dc.subjectBARRIERS TO ENTRY
dc.subjectBROADCAST
dc.subjectBUS
dc.subjectBUSINESS CLIMATE
dc.subjectBUSINESS OPPORTUNITIES
dc.subjectBUSINESS PURPOSES
dc.subjectBUSINESS REGULATION
dc.subjectBUSINESS SERVICES
dc.subjectCAPABILITIES
dc.subjectCAPITAL REQUIREMENT
dc.subjectCAPITAL REQUIREMENTS
dc.subjectCOMMUNICATION COSTS
dc.subjectCOMPARATOR COUNTRIES
dc.subjectCOMPETITION POLICIES
dc.subjectCOMPETITIVE PRICES
dc.subjectCOMPETITIVENESS
dc.subjectCORPORATE GOVERNANCE
dc.subjectCOUNTRY COMPARISONS
dc.subjectDATA AVAILABILITY
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDEVELOPMENT INVESTMENTS
dc.subjectDOMESTIC MARKET
dc.subjectDRIVING
dc.subjectDRIVING COSTS
dc.subjectECONOMIC INTEGRATION
dc.subjectECONOMIC PERFORMANCE
dc.subjectELASTICITY
dc.subjectELECTRICITY
dc.subjectEMPLOYMENT
dc.subjectENTERPRISE SURVEY
dc.subjectENTERPRISE SURVEYS
dc.subjectEQUIPMENT
dc.subjectEXCHANGE BANKS
dc.subjectEXPORT MARKETS
dc.subjectEXPOSURE
dc.subjectFINANCIAL COMPANIES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL SECTORS
dc.subjectFINANCIAL SERVICES
dc.subjectFIRM PERFORMANCE
dc.subjectFOREIGN BANKS
dc.subjectFOREIGN COMPANIES
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN ENTRY
dc.subjectFOREIGN EXCHANGE
dc.subjectFOREIGN FIRMS
dc.subjectFOREIGN INVESTMENT
dc.subjectFOREIGN INVESTORS
dc.subjectFOREIGN OWNERSHIP
dc.subjectFRAMEWORK AGREEMENT
dc.subjectFREIGHT
dc.subjectFREIGHT COSTS
dc.subjectFREIGHT SECTOR
dc.subjectGLOBAL MARKETPLACE
dc.subjectID
dc.subjectINFRASTRUCTURE CAPACITY
dc.subjectINNOVATION
dc.subjectINSPECTION
dc.subjectINSURANCE
dc.subjectINTERNATIONAL AIR SERVICES
dc.subjectINTERNATIONAL BUSINESS
dc.subjectINTERNATIONAL INVESTMENT
dc.subjectINTERNATIONAL SHIPPING
dc.subjectINTERNATIONAL STANDARD
dc.subjectINTERNATIONAL TRADE
dc.subjectINTERNET SERVICE PROVIDERS
dc.subjectINVENTORY
dc.subjectINVESTMENT POLICIES
dc.subjectJOINT VENTURE
dc.subjectLABOR COSTS
dc.subjectLAND USE
dc.subjectLEGISLATION
dc.subjectLIBERALIZATION
dc.subjectLONG-DISTANCE
dc.subjectMANUFACTURING
dc.subjectMARKET FAILURES
dc.subjectMEDIA
dc.subjectMOBILE PHONE
dc.subjectMONOPOLIES
dc.subjectMONOPOLY
dc.subjectNATIONAL AIRLINES
dc.subjectOPEN ACCESS
dc.subjectOPEN ECONOMIES
dc.subjectOUTPUT
dc.subjectPENSION
dc.subjectPENSION FUNDS
dc.subjectPRIVATE INVESTMENT
dc.subjectPRIVATE SECTOR
dc.subjectPRIVATIZATION
dc.subjectPRIVATIZATIONS
dc.subjectPRODUCTIVITY
dc.subjectPROGRAMS
dc.subjectQUALITY OF SERVICES
dc.subjectR&D
dc.subjectRADIOS
dc.subjectRAILWAYS
dc.subjectREAL ESTATE
dc.subjectREGIONAL INTEGRATION
dc.subjectREGULATOR
dc.subjectREGULATORY REFORM
dc.subjectREGULATORY RESTRICTIONS
dc.subjectRESULT
dc.subjectRESULTS
dc.subjectREVENUE SHARING
dc.subjectROAD
dc.subjectROAD TRANSPORT
dc.subjectSERVICE PROVIDERS
dc.subjectSERVICES INFRASTRUCTURE
dc.subjectTARGETS
dc.subjectTECHNICAL ASSISTANCE
dc.subjectTECHNOLOGICAL ADVANCES
dc.subjectTECHNOLOGY TRANSFER
dc.subjectTELECOM
dc.subjectTELECOM SECTOR
dc.subjectTELECOMMUNICATIONS
dc.subjectTELECOMMUNICATIONS REFORM
dc.subjectTELECOMMUNICATIONS SECTOR
dc.subjectTELECOMS
dc.subjectTELEVISIONS
dc.subjectTIME PERIOD
dc.subjectTOLL
dc.subjectTOLL ROAD
dc.subjectTRADE FLOWS
dc.subjectTRADES
dc.subjectTRAINS
dc.subjectTRANSITION ECONOMIES
dc.subjectTRANSMISSION
dc.subjectTRANSPARENCY
dc.subjectTRANSPORT
dc.subjectTRANSPORT COSTS
dc.subjectTRANSPORT EQUIPMENT
dc.subjectTRANSPORT SECTOR
dc.subjectTRANSPORTATION
dc.subjectTURNOVER
dc.subjectUSERS
dc.subjectUSES
dc.subjectVEHICLES
dc.subjectVENTURE CAPITAL
dc.subjectWATER SUPPLY
dc.subjectWEB
dc.subjectWORLD ECONOMY
dc.titleService Sector Reform and Manufacturing Productivity : Evidence from Indonesiaen
dspace.entity.typePublication
okr.crossref.titleService Sector Reform and Manufacturing Productivity: Evidence from Indonesia
okr.date.disclosure2013-01-01
okr.date.doiregistration2025-04-10T09:19:00.635949Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2013/01/17206424/service-sector-reform-manufacturing-productivity-evidence-indonesia
okr.globalpracticeTransport and ICT
okr.globalpracticeFinance and Markets
okr.globalpracticeTransport and ICT
okr.globalpracticeTrade and Competitiveness
okr.guid207801468049736587
okr.identifier.doi10.1596/1813-9450-6349
okr.identifier.externaldocumentum000158349_20130131093506
okr.identifier.internaldocumentum17206424
okr.identifier.reportWPS6349
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2013/01/31/000158349_20130131093506/Rendered/PDF/wps6349.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryIndonesia
okr.topicInformation and Communication Technologies::ICT Policy and Strategies
okr.topicPrivate Sector Development::E-Business
okr.topicBanks and Banking Reform
okr.topicPrivate Sector Development::Emerging Markets
okr.topicTransport Economics Policy and Planning
okr.topicFinance and Financial Sector Development
okr.topicTransport
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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