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Impacts of Aid-Funded Technical Assistance Programs: Firm-Level Evidence from the Indonesian Foundry Industry

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  • TODO Yasuyuki

Abstract

This study examines the effect of Japanese aid-funded technical assistance programs in the Indonesian foundry industry funded, applying difference-in-differences propensity score matching estimation to a unique firm-level dataset. The major finding is that the average effect of the aid programs on the change in the reject ratio is negative and significant, suggesting that these programs help local participant firms improve their technology. However, the effect of the programs is limited to their participants and does not spill over to non-participants. In addition, technical assistance programs provided by the local counterpart of aid after the completion of the aid programs do not seem to improve technology of participants on average.

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  • TODO Yasuyuki, 2008. "Impacts of Aid-Funded Technical Assistance Programs: Firm-Level Evidence from the Indonesian Foundry Industry," Discussion papers 08024, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:08024
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    2. Vargas Da Cruz,Marcio Jose, 2014. "Do export promotion agencies promote new exporters ?," Policy Research Working Paper Series 7004, The World Bank.
    3. Mano, Yukichi & Akoten, John & Yoshino, Yutaka & Sonobe, Tetsushi, 2014. "Teaching KAIZEN to small business owners: An experiment in a metalworking cluster in Nairobi," Journal of the Japanese and International Economies, Elsevier, vol. 33(C), pages 25-42.
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    5. Bah, El-hadj & Brada, Josef C. & Yigit, Taner, 2011. "With a little help from our friends: The effect of USAID assistance on SME growth in a transition economy," Journal of Comparative Economics, Elsevier, vol. 39(2), pages 205-220, June.

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