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Technological Intensity and Export Incidence: A Study of Foreign and Local Auto-Parts, Electronics and Garment Firms in Indonesia

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  • Rasiah, Rajah

    (United Nations University, Institute for New Technologies)

Abstract

This paper attempts to examine differences in technological capabilities between foreign and local auto parts, electronics, and textile and garment firms in Indonesia. Foreign firms enjoyed higher export incidence than local firms in all three industries. Foreign firms enjoyed higher overall technology and HR intensity means than local firms in auto parts and electronics. Foreign firms enjoyed higher and statistically significant process technology mean than local firms in electronics. Foreign firms also enjoyed higher means than local firms in process technology and R&D intensities. The econometric results showed a strong relationship between export-incidence, and overall technological, HR and process technology intensities. Foreign ownership was not only statistically significant and its coefficient positive in the overall sample of the HR regression, but it also emerged that export-incidence was stronger among foreign firms. Export-incidence involving process technology regression was also stronger in the foreign firms' sample

Suggested Citation

  • Rasiah, Rajah, 2004. "Technological Intensity and Export Incidence: A Study of Foreign and Local Auto-Parts, Electronics and Garment Firms in Indonesia," UNU-INTECH Discussion Paper Series 2004-05, United Nations University - INTECH.
    • Handle: RePEc:unm:unuint:200405
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    File URL: https://www.merit.unu.edu/publications/discussion-papers/2004-5.pdf
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    2. Doner, Richard F. & Noble, Gregory W. & Ravenhill, John, 2006. "Industrial competitiveness of the auto parts industries in four large Asian countries : the role of government policy in a challenging international environment," Policy Research Working Paper Series 4106, The World Bank.
    3. Yohanes Kadarusman, 2012. "Knowledge Acquisition: Lessons from Local and Global Interaction in the Indonesian Consumer Electronics Sector," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 4(2), pages 65-100, July.
    4. Peerally, Jahan Ara & Cantwell, John A, 2012. "Changes in Trade Policies and the Heterogeneity of Domestic and Multinational Firms’ Strategic Response: The Effects on Firm-Level Capabilities," World Development, Elsevier, vol. 40(3), pages 469-485.
    5. Trunin, Pavel (Трунин, Павел), 2015. "Analysis of the Level of Development of the Financial System in the Russian Federation [Анализ Уровня Развития Финансовой Системы В Российской Федерации]," Published Papers mn38, Russian Presidential Academy of National Economy and Public Administration.

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    Keywords

    Technology; Export; Ownership; Indonesia;
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