Abstract :
Foreign direct investment (FDI) has been important in the growth and global integration of developing economies. Both northeast and southeast Asia, especially the latter, have been part of this development, with increasing inflows of FDI and greater foreign participation in local economies. However, Indonesia has been an outlier within the region. Inflows of FDI have been lower to Indonesia than to other countries, especially in manufacturing, and they have been lower than could be expected from Indonesia’s size, population and other country characteristics. We show that the inflows that have occurred have benefited Indonesia, and use the east Asian experience to identify measures that are likely to increase these flows. A relatively poor business environment, inefficient government institutions, low levels of education and poor infrastructure all seem to be important explanations for the low inflows of FDI to Indonesia.
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2011Centre for Strategic and International Studies (CSIS)Unduh MARCSitasi
Abstract :
Some countries produce more multinational enterprises (MNEs) than others, India and China, in particular, have produced a number of dynamic MNEs whose success abroad generates important economic benefits for the home economy. Motivated by this observation, we describe the internationalization record of Indonesia’s major business groups. Using an archival analysis method, we find that, with a few exceptions, Indonesia’s largest business grouping focus predominantly upon the domestic market. We advance two explanations for this investment pattern. The first suggest that the apparent absence of Indonesian MNEs is an accounting error, because firms outward investment is under-reported in official statistics. The second suggests that Indonesians outward foreign direct investment is impeded by a combination of institutional and firm level factors that arrest the internationalization of all but the largest firms. We discuss the policy implications of these findings and reflect on
No. Panggil
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Ketersediaan1
Tambahkan ke dalam keranjang
2011Centre for Strategic and International Studies (CSIS)Unduh MARCSitasi