PUBLICATIONS & REPORTS

PUBLICATIONS & REPORTS

Globalization, Productivity Changes, and Missing Middle in Indonesia’s Manufacturing Sectors

Author Kazuhiko Yokota
Date of Publication 2008. 3
No. 2008-03
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Contents Introduction

This paper analyzes the productivity growth, technical efficiency, and technological changes in Indonesia’s manufacturing sector. Using establishment-level industrial census, I showed the details of the productivity change, innovation, and catch-up performances of four sectors—apparel, general machinery, electric machinery, and motor vehicles. Then I identified the factors affecting the firms’ performance. The results showed that globalization matters for mainly large enterprises in the electrical machinery and motor vehicle industries while medium-sized enterprises are not deeply affected by trade and investment liberalization.