Trade Integration, FDI, and Productivity

Policy attitude towards trade integration and foreign direct investment (FDI) is often a controversial yet popular subject. This note presents evidences from recent policy researches that arguing that engaging in an open trade and investment regime...

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Main Authors:	Javorcik, Beata, Iacovone, Leonardo, Fitrani, Fitria
Format:	Report
Language:	English en_US
Published:	World Bank, Jakarta 2015
Subjects:	RENT SEEKING EMPLOYMENT FOREIGN ENTRY RISKS RIGHTS FOREIGN PARENT COMPANY EQUIPMENT ECONOMIC GROWTH MANUFACTURING FIRMS ACCOUNTING INTANGIBLE ASSETS CUSTOMER PRODUCTION INVESTMENT PROMOTION FOREIGN INVESTORS MATERIALS SEARCH INCOME INTEREST FOREIGN OWNERSHIP BUYER EXPECTATIONS DOMESTIC FIRMS FOREIGN PRODUCERS INDUSTRY VALUE CHAIN STRATEGIES CONSUMER GOODS INFORMATION LABOR FORCE LIQUIDITY SERVICES EXPORTS WELFARE IMAGE EFFECTS COPYRIGHT INCENTIVES INVESTMENT PROMOTION AGENCY MARKET SHARES VARIABLES MANUFACTURING SECTOR INPUTS TIME PERIOD INVESTMENT REGIME DRIVERS PRODUCTION PROCESS NEW TECHNOLOGIES DEMONSTRATION EFFECTS LINK DATA TOTAL FACTOR PRODUCTIVITY GLOBAL ECONOMY TRAINING COMPUTERS TELECOMMUNICATIONS TRANSPORT RENT HOST COUNTRIES VALUE CHAINS TARGETS MANUFACTURING INDUSTRY PRODUCTIVITY LABOR PRODUCTIVITY EXTERNALITIES FOREIGN ACQUISITION PRODUCT DESIGN MARKETING CUSTOMER SERVICE INTERNATIONAL ECONOMICS DIRECT INVESTMENT LABOR BUSINESS REGISTRATION INVESTMENT PROMOTION AGENCIES INFRASTRUCTURE IMPORT TARIFFS MANUFACTURING USERS TECHNOLOGY RD EQUITY PRODUCTIVITY GROWTH WAGES BUSINESS PLAN TECHNOLOGICAL SOPHISTICATION RESULTS VALUE COMPETITIVENESS BENCHMARKING FOREIGN DIRECT INVESTMENT BANK CREDIT FOREIGN TECHNOLOGY FAX CONSUMERS PROPERTY JOB CREATION IPA INDUSTRY PRODUCTIVITY TRADE LIBERALIZATION ECONOMICS INFORMATION PROVISION SKILLED LABOR MANAGEMENT GOVERNANCE RESULT ECONOMIC DEVELOPMENT MANUFACTURING INDUSTRIES TRADE GOODS MARKET SHARE TECHNOLOGY TRANSFER BUSINESS INVESTMENT HOST COUNTRY FDI ADVERSE IMPACT IPAS PERFORMANCE CRISES SUPPLY PRODUCT INNOVATION FOREIGN ACQUISITIONS INNOVATION MANUFACTURING SECTORS TOTAL OUTPUT CUSTOMERS SUPPLIERS AVERAGE PRODUCTIVITY PROSPECTIVE CUSTOMERS TECHNOLOGIES GOVERNMENTS TARGET AUDITING USER COMPETITION
Online Access:	http://documents.worldbank.org/curated/en/2015/12/19788891/trade-integration-fdi-productivity-policy-note-ii http://hdl.handle.net/10986/23508

id	okr-10986-23508
recordtype	oai_dc
spelling	okr-10986-235082021-04-23T14:04:15Z Trade Integration, FDI, and Productivity Javorcik, Beata Iacovone, Leonardo Fitrani, Fitria RENT SEEKING EMPLOYMENT FOREIGN ENTRY RISKS RIGHTS FOREIGN PARENT COMPANY EQUIPMENT ECONOMIC GROWTH MANUFACTURING FIRMS ACCOUNTING INTANGIBLE ASSETS CUSTOMER PRODUCTION INVESTMENT PROMOTION FOREIGN INVESTORS MATERIALS SEARCH INCOME INTEREST FOREIGN OWNERSHIP BUYER EXPECTATIONS DOMESTIC FIRMS FOREIGN PRODUCERS INDUSTRY VALUE CHAIN STRATEGIES CONSUMER GOODS INFORMATION LABOR FORCE LIQUIDITY SERVICES EXPORTS WELFARE IMAGE EFFECTS COPYRIGHT INCENTIVES INVESTMENT PROMOTION AGENCY MARKET SHARES VARIABLES MANUFACTURING SECTOR INPUTS TIME PERIOD INVESTMENT REGIME DRIVERS PRODUCTION PROCESS NEW TECHNOLOGIES DEMONSTRATION EFFECTS LINK DATA TOTAL FACTOR PRODUCTIVITY GLOBAL ECONOMY TRAINING COMPUTERS TELECOMMUNICATIONS TRANSPORT RENT HOST COUNTRIES VALUE CHAINS TARGETS MANUFACTURING INDUSTRY PRODUCTIVITY LABOR PRODUCTIVITY EXTERNALITIES FOREIGN ACQUISITION PRODUCT DESIGN MARKETING CUSTOMER SERVICE INTERNATIONAL ECONOMICS DIRECT INVESTMENT LABOR BUSINESS REGISTRATION INVESTMENT PROMOTION AGENCIES INFRASTRUCTURE IMPORT TARIFFS MANUFACTURING USERS TECHNOLOGY RD EQUITY PRODUCTIVITY GROWTH WAGES BUSINESS PLAN TECHNOLOGICAL SOPHISTICATION RESULTS VALUE COMPETITIVENESS BENCHMARKING FOREIGN DIRECT INVESTMENT BANK CREDIT FOREIGN TECHNOLOGY FAX CONSUMERS PROPERTY JOB CREATION IPA INDUSTRY PRODUCTIVITY TRADE LIBERALIZATION ECONOMICS INFORMATION PROVISION SKILLED LABOR MANAGEMENT GOVERNANCE RESULT ECONOMIC DEVELOPMENT MANUFACTURING INDUSTRIES TRADE GOODS MARKET SHARE TECHNOLOGY TRANSFER BUSINESS INVESTMENT HOST COUNTRY FDI ADVERSE IMPACT IPAS PERFORMANCE CRISES SUPPLY PRODUCT INNOVATION FOREIGN ACQUISITIONS INNOVATION MANUFACTURING SECTORS TOTAL OUTPUT CUSTOMERS SUPPLIERS AVERAGE PRODUCTIVITY PROSPECTIVE CUSTOMERS TECHNOLOGIES GOVERNMENTS TARGET AUDITING USER COMPETITION Policy attitude towards trade integration and foreign direct investment (FDI) is often a controversial yet popular subject. This note presents evidences from recent policy researches that arguing that engaging in an open trade and investment regime have brought productivity gains which is key factor for sustaining increase in income per-capita. Evidence from Indonesia also suggests that foreign owned plants have become increasingly important, generating a significant share of exports and overall output, as well as more productive and more export intensive than domestic plants, and to spend more on RD and training. FDI also have positive impact on firms in the same sector, through competition and demonstration effects, and in upstream sectors, as suppliers to foreign-owned plants improve the quality of their own products to meet their clients more exacting needs. Evidence also suggests a positive impact from import competition in improving allocative efficiency across manufacturing plants which is a key element in driving productivity in manufacturing sector. 2015-12-23T15:54:46Z 2015-12-23T15:54:46Z 2015-04 Report http://documents.worldbank.org/curated/en/2015/12/19788891/trade-integration-fdi-productivity-policy-note-ii http://hdl.handle.net/10986/23508 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Jakarta Economic & Sector Work :: Policy Note Economic & Sector Work East Asia and Pacific Indonesia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	RENT SEEKING EMPLOYMENT FOREIGN ENTRY RISKS RIGHTS FOREIGN PARENT COMPANY EQUIPMENT ECONOMIC GROWTH MANUFACTURING FIRMS ACCOUNTING INTANGIBLE ASSETS CUSTOMER PRODUCTION INVESTMENT PROMOTION FOREIGN INVESTORS MATERIALS SEARCH INCOME INTEREST FOREIGN OWNERSHIP BUYER EXPECTATIONS DOMESTIC FIRMS FOREIGN PRODUCERS INDUSTRY VALUE CHAIN STRATEGIES CONSUMER GOODS INFORMATION LABOR FORCE LIQUIDITY SERVICES EXPORTS WELFARE IMAGE EFFECTS COPYRIGHT INCENTIVES INVESTMENT PROMOTION AGENCY MARKET SHARES VARIABLES MANUFACTURING SECTOR INPUTS TIME PERIOD INVESTMENT REGIME DRIVERS PRODUCTION PROCESS NEW TECHNOLOGIES DEMONSTRATION EFFECTS LINK DATA TOTAL FACTOR PRODUCTIVITY GLOBAL ECONOMY TRAINING COMPUTERS TELECOMMUNICATIONS TRANSPORT RENT HOST COUNTRIES VALUE CHAINS TARGETS MANUFACTURING INDUSTRY PRODUCTIVITY LABOR PRODUCTIVITY EXTERNALITIES FOREIGN ACQUISITION PRODUCT DESIGN MARKETING CUSTOMER SERVICE INTERNATIONAL ECONOMICS DIRECT INVESTMENT LABOR BUSINESS REGISTRATION INVESTMENT PROMOTION AGENCIES INFRASTRUCTURE IMPORT TARIFFS MANUFACTURING USERS TECHNOLOGY RD EQUITY PRODUCTIVITY GROWTH WAGES BUSINESS PLAN TECHNOLOGICAL SOPHISTICATION RESULTS VALUE COMPETITIVENESS BENCHMARKING FOREIGN DIRECT INVESTMENT BANK CREDIT FOREIGN TECHNOLOGY FAX CONSUMERS PROPERTY JOB CREATION IPA INDUSTRY PRODUCTIVITY TRADE LIBERALIZATION ECONOMICS INFORMATION PROVISION SKILLED LABOR MANAGEMENT GOVERNANCE RESULT ECONOMIC DEVELOPMENT MANUFACTURING INDUSTRIES TRADE GOODS MARKET SHARE TECHNOLOGY TRANSFER BUSINESS INVESTMENT HOST COUNTRY FDI ADVERSE IMPACT IPAS PERFORMANCE CRISES SUPPLY PRODUCT INNOVATION FOREIGN ACQUISITIONS INNOVATION MANUFACTURING SECTORS TOTAL OUTPUT CUSTOMERS SUPPLIERS AVERAGE PRODUCTIVITY PROSPECTIVE CUSTOMERS TECHNOLOGIES GOVERNMENTS TARGET AUDITING USER COMPETITION
spellingShingle	RENT SEEKING EMPLOYMENT FOREIGN ENTRY RISKS RIGHTS FOREIGN PARENT COMPANY EQUIPMENT ECONOMIC GROWTH MANUFACTURING FIRMS ACCOUNTING INTANGIBLE ASSETS CUSTOMER PRODUCTION INVESTMENT PROMOTION FOREIGN INVESTORS MATERIALS SEARCH INCOME INTEREST FOREIGN OWNERSHIP BUYER EXPECTATIONS DOMESTIC FIRMS FOREIGN PRODUCERS INDUSTRY VALUE CHAIN STRATEGIES CONSUMER GOODS INFORMATION LABOR FORCE LIQUIDITY SERVICES EXPORTS WELFARE IMAGE EFFECTS COPYRIGHT INCENTIVES INVESTMENT PROMOTION AGENCY MARKET SHARES VARIABLES MANUFACTURING SECTOR INPUTS TIME PERIOD INVESTMENT REGIME DRIVERS PRODUCTION PROCESS NEW TECHNOLOGIES DEMONSTRATION EFFECTS LINK DATA TOTAL FACTOR PRODUCTIVITY GLOBAL ECONOMY TRAINING COMPUTERS TELECOMMUNICATIONS TRANSPORT RENT HOST COUNTRIES VALUE CHAINS TARGETS MANUFACTURING INDUSTRY PRODUCTIVITY LABOR PRODUCTIVITY EXTERNALITIES FOREIGN ACQUISITION PRODUCT DESIGN MARKETING CUSTOMER SERVICE INTERNATIONAL ECONOMICS DIRECT INVESTMENT LABOR BUSINESS REGISTRATION INVESTMENT PROMOTION AGENCIES INFRASTRUCTURE IMPORT TARIFFS MANUFACTURING USERS TECHNOLOGY RD EQUITY PRODUCTIVITY GROWTH WAGES BUSINESS PLAN TECHNOLOGICAL SOPHISTICATION RESULTS VALUE COMPETITIVENESS BENCHMARKING FOREIGN DIRECT INVESTMENT BANK CREDIT FOREIGN TECHNOLOGY FAX CONSUMERS PROPERTY JOB CREATION IPA INDUSTRY PRODUCTIVITY TRADE LIBERALIZATION ECONOMICS INFORMATION PROVISION SKILLED LABOR MANAGEMENT GOVERNANCE RESULT ECONOMIC DEVELOPMENT MANUFACTURING INDUSTRIES TRADE GOODS MARKET SHARE TECHNOLOGY TRANSFER BUSINESS INVESTMENT HOST COUNTRY FDI ADVERSE IMPACT IPAS PERFORMANCE CRISES SUPPLY PRODUCT INNOVATION FOREIGN ACQUISITIONS INNOVATION MANUFACTURING SECTORS TOTAL OUTPUT CUSTOMERS SUPPLIERS AVERAGE PRODUCTIVITY PROSPECTIVE CUSTOMERS TECHNOLOGIES GOVERNMENTS TARGET AUDITING USER COMPETITION Javorcik, Beata Iacovone, Leonardo Fitrani, Fitria Trade Integration, FDI, and Productivity
geographic_facet	East Asia and Pacific Indonesia
description	Policy attitude towards trade integration and foreign direct investment (FDI) is often a controversial yet popular subject. This note presents evidences from recent policy researches that arguing that engaging in an open trade and investment regime have brought productivity gains which is key factor for sustaining increase in income per-capita. Evidence from Indonesia also suggests that foreign owned plants have become increasingly important, generating a significant share of exports and overall output, as well as more productive and more export intensive than domestic plants, and to spend more on RD and training. FDI also have positive impact on firms in the same sector, through competition and demonstration effects, and in upstream sectors, as suppliers to foreign-owned plants improve the quality of their own products to meet their clients more exacting needs. Evidence also suggests a positive impact from import competition in improving allocative efficiency across manufacturing plants which is a key element in driving productivity in manufacturing sector.
format	Report
author	Javorcik, Beata Iacovone, Leonardo Fitrani, Fitria
author_facet	Javorcik, Beata Iacovone, Leonardo Fitrani, Fitria
author_sort	Javorcik, Beata
title	Trade Integration, FDI, and Productivity
title_short	Trade Integration, FDI, and Productivity
title_full	Trade Integration, FDI, and Productivity
title_fullStr	Trade Integration, FDI, and Productivity
title_full_unstemmed	Trade Integration, FDI, and Productivity
title_sort	trade integration, fdi, and productivity
publisher	World Bank, Jakarta
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/12/19788891/trade-integration-fdi-productivity-policy-note-ii http://hdl.handle.net/10986/23508
_version_	1764454029985841152

Trade Integration, FDI, and Productivity

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