Revealing the Impact of Relaxing Service Sector FDI Restrictions on Productivity in Indonesian Manufacturing

The services sector in Indonesia accounts for more than half of total value added, employs more than 55 million workers, and provides 35 percent of overall inputs to the productive sectors of the economy. Improving quality, increasing diversity and...

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Main Authors: Duggan, Victor, Rahardja, Sjamsu, Varela, Gonzalo J.
Format: Report
Language:English
en_US
Published: World Bank, Jakarta 2015
Subjects:
AIR
BUS
LAW
Online Access:http://documents.worldbank.org/curated/en/2015/12/19787609/revealing-impact-relaxing-service-sector-fdi-restrictions-productivity-indonesian-manufacturing-policy-note-v
http://hdl.handle.net/10986/23511
id okr-10986-23511
recordtype oai_dc
spelling okr-10986-235112021-04-23T14:04:15Z Revealing the Impact of Relaxing Service Sector FDI Restrictions on Productivity in Indonesian Manufacturing Duggan, Victor Rahardja, Sjamsu Varela, Gonzalo J. NEW MARKET FINANCIAL SERVICES REGULATORY FRAMEWORK TRANSPORT SECTOR EXPORT MARKETS RELIABILITY OF SERVICE RADIOS EQUIPMENT ACCOUNTING QUALITY OF SERVICES BUSINESS OPPORTUNITIES ABUSE LAWS PRIVATIZATION COMMUNICATIONS MEDIA GOVERNMENT SATELLITES ENTERPRISE SURVEY VALUE CHAIN STRATEGIES INFORMATION SERVICES ELASTICITY MULTINATIONAL COPYRIGHT TRANSMISSION MULTIMODAL TRANSPORT PRICE AIR TRANSPORT SERVICES TELEVISION COMMUNICATIONS INSTITUTIONS LINK DATA ROAD BUSINESS REGULATION PHONE LINES COSTS TELECOMMUNICATIONS CELLULAR PHONE TRANSPORT TECHNOLOGICAL ADVANCES LONG-DISTANCE DISTRIBUTION NETWORKS TARGETS PRODUCTIVITY MONOPOLY BUSINESS SERVICES MULTINATIONALS PRIVATE INVESTMENT SERVICE PROVIDER MEDIUM FUELS NETWORK SERVICE RADIO CAPABILITIES FREIGHT COSTS INFRASTRUCTURE LAND USE GLOBAL MARKETPLACE TRANSACTIONS INFRASTRUCTURE INVESTMENT MANUFACTURING USERS PHONE TECHNOLOGY BUS HUMAN CAPITAL RELIABILITY INSPECTION POLICIES INTERNATIONAL TRADE TRANSPARENCY INTERNATIONAL INVESTMENT RESULTS MOBILE PHONE TELECOMMUNICATIONS INDUSTRY COMPETITIVENESS LAND TRANSPORT FOREIGN DIRECT INVESTMENT ELECTRICITY BANK TELEVISIONS ELASTICITIES FOREIGN INVESTMENT NETWORKS UNIVERSAL ACCESS GLOBAL SUPPLY CHAINS FRAMEWORK AGREEMENT PRIVATE SECTOR FOREIGN EXCHANGE POLICY MEDIA RESULT EXPORT SECTOR ECONOMIC DEVELOPMENT AIR TRANSPORT SUPPLY CHAINS ECONOMIES OF SCALE BUSINESS CLIMATE BUSINESS NETWORK ACCESS TO SERVICES MONOPOLIES PERFORMANCE TELECOM FREIGHT SECTOR INTERNATIONAL STANDARD COMPETITIVE PRICES INNOVATION LAW INVESTMENTS COMMUNICATION AGREEMENT CUSTOMERS SERVICES INFRASTRUCTURE DATABASE INTERNET SERVICE PROVIDERS TECHNOLOGIES GOVERNMENTS COMMODITY SERVICE FREIGHT PRICES PRODUCTION PROCESSES SERVICE PROVIDERS The services sector in Indonesia accounts for more than half of total value added, employs more than 55 million workers, and provides 35 percent of overall inputs to the productive sectors of the economy. Improving quality, increasing diversity and reducing costs in service sectors produce is likely to greatly improve Indonesia s competitiveness across all sectors. With a focus on the manufacturing sector, this note argues that relaxing restrictions on competition and on the participation of foreign firms, in services can be expected to improve service sector performance, and lead to economy-wide benefits in terms of productivity and competitiveness. It does so by reviewing the international evidence available, and by presenting new evidence for Indonesia on the positive spillovers that easing restrictions has had on the productivity of domestic manufacturing firms. The economic impact of these spillovers is sizable. In fact, spillovers from service sector reform account for about 8 percent of the observed increase in Indonesian manufacturing productivity over the period 1997-2009. 2015-12-23T15:54:49Z 2015-12-23T15:54:49Z 2015-04 Report http://documents.worldbank.org/curated/en/2015/12/19787609/revealing-impact-relaxing-service-sector-fdi-restrictions-productivity-indonesian-manufacturing-policy-note-v http://hdl.handle.net/10986/23511 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 NEW MARKET
FINANCIAL SERVICES
REGULATORY FRAMEWORK
TRANSPORT SECTOR
EXPORT MARKETS
RELIABILITY OF SERVICE
RADIOS
EQUIPMENT
ACCOUNTING
QUALITY OF SERVICES
BUSINESS OPPORTUNITIES
ABUSE
LAWS
PRIVATIZATION
COMMUNICATIONS MEDIA
GOVERNMENT
SATELLITES
ENTERPRISE SURVEY
VALUE CHAIN
STRATEGIES
INFORMATION
SERVICES
ELASTICITY
MULTINATIONAL
COPYRIGHT
TRANSMISSION
MULTIMODAL TRANSPORT
PRICE
AIR
TRANSPORT SERVICES
TELEVISION
COMMUNICATIONS
INSTITUTIONS
LINK
DATA
ROAD
BUSINESS REGULATION
PHONE LINES
COSTS
TELECOMMUNICATIONS
CELLULAR PHONE
TRANSPORT
TECHNOLOGICAL ADVANCES
LONG-DISTANCE
DISTRIBUTION NETWORKS
TARGETS
PRODUCTIVITY
MONOPOLY
BUSINESS SERVICES
MULTINATIONALS
PRIVATE INVESTMENT
SERVICE PROVIDER
MEDIUM
FUELS
NETWORK SERVICE
RADIO
CAPABILITIES
FREIGHT COSTS
INFRASTRUCTURE
LAND USE
GLOBAL MARKETPLACE
TRANSACTIONS
INFRASTRUCTURE INVESTMENT
MANUFACTURING
USERS
PHONE
TECHNOLOGY
BUS
HUMAN CAPITAL
RELIABILITY
INSPECTION
POLICIES
INTERNATIONAL TRADE
TRANSPARENCY
INTERNATIONAL INVESTMENT
RESULTS
MOBILE PHONE
TELECOMMUNICATIONS INDUSTRY
COMPETITIVENESS
LAND TRANSPORT
FOREIGN DIRECT INVESTMENT
ELECTRICITY
BANK
TELEVISIONS
ELASTICITIES
FOREIGN INVESTMENT
NETWORKS
UNIVERSAL ACCESS
GLOBAL SUPPLY CHAINS
FRAMEWORK AGREEMENT
PRIVATE SECTOR
FOREIGN EXCHANGE
POLICY
MEDIA
RESULT
EXPORT SECTOR
ECONOMIC DEVELOPMENT
AIR TRANSPORT
SUPPLY CHAINS
ECONOMIES OF SCALE
BUSINESS CLIMATE
BUSINESS
NETWORK
ACCESS TO SERVICES
MONOPOLIES
PERFORMANCE
TELECOM
FREIGHT SECTOR
INTERNATIONAL STANDARD
COMPETITIVE PRICES
INNOVATION
LAW
INVESTMENTS
COMMUNICATION
AGREEMENT
CUSTOMERS
SERVICES INFRASTRUCTURE
DATABASE
INTERNET SERVICE PROVIDERS
TECHNOLOGIES
GOVERNMENTS
COMMODITY
SERVICE
FREIGHT
PRICES
PRODUCTION PROCESSES
SERVICE PROVIDERS
spellingShingle NEW MARKET
FINANCIAL SERVICES
REGULATORY FRAMEWORK
TRANSPORT SECTOR
EXPORT MARKETS
RELIABILITY OF SERVICE
RADIOS
EQUIPMENT
ACCOUNTING
QUALITY OF SERVICES
BUSINESS OPPORTUNITIES
ABUSE
LAWS
PRIVATIZATION
COMMUNICATIONS MEDIA
GOVERNMENT
SATELLITES
ENTERPRISE SURVEY
VALUE CHAIN
STRATEGIES
INFORMATION
SERVICES
ELASTICITY
MULTINATIONAL
COPYRIGHT
TRANSMISSION
MULTIMODAL TRANSPORT
PRICE
AIR
TRANSPORT SERVICES
TELEVISION
COMMUNICATIONS
INSTITUTIONS
LINK
DATA
ROAD
BUSINESS REGULATION
PHONE LINES
COSTS
TELECOMMUNICATIONS
CELLULAR PHONE
TRANSPORT
TECHNOLOGICAL ADVANCES
LONG-DISTANCE
DISTRIBUTION NETWORKS
TARGETS
PRODUCTIVITY
MONOPOLY
BUSINESS SERVICES
MULTINATIONALS
PRIVATE INVESTMENT
SERVICE PROVIDER
MEDIUM
FUELS
NETWORK SERVICE
RADIO
CAPABILITIES
FREIGHT COSTS
INFRASTRUCTURE
LAND USE
GLOBAL MARKETPLACE
TRANSACTIONS
INFRASTRUCTURE INVESTMENT
MANUFACTURING
USERS
PHONE
TECHNOLOGY
BUS
HUMAN CAPITAL
RELIABILITY
INSPECTION
POLICIES
INTERNATIONAL TRADE
TRANSPARENCY
INTERNATIONAL INVESTMENT
RESULTS
MOBILE PHONE
TELECOMMUNICATIONS INDUSTRY
COMPETITIVENESS
LAND TRANSPORT
FOREIGN DIRECT INVESTMENT
ELECTRICITY
BANK
TELEVISIONS
ELASTICITIES
FOREIGN INVESTMENT
NETWORKS
UNIVERSAL ACCESS
GLOBAL SUPPLY CHAINS
FRAMEWORK AGREEMENT
PRIVATE SECTOR
FOREIGN EXCHANGE
POLICY
MEDIA
RESULT
EXPORT SECTOR
ECONOMIC DEVELOPMENT
AIR TRANSPORT
SUPPLY CHAINS
ECONOMIES OF SCALE
BUSINESS CLIMATE
BUSINESS
NETWORK
ACCESS TO SERVICES
MONOPOLIES
PERFORMANCE
TELECOM
FREIGHT SECTOR
INTERNATIONAL STANDARD
COMPETITIVE PRICES
INNOVATION
LAW
INVESTMENTS
COMMUNICATION
AGREEMENT
CUSTOMERS
SERVICES INFRASTRUCTURE
DATABASE
INTERNET SERVICE PROVIDERS
TECHNOLOGIES
GOVERNMENTS
COMMODITY
SERVICE
FREIGHT
PRICES
PRODUCTION PROCESSES
SERVICE PROVIDERS
Duggan, Victor
Rahardja, Sjamsu
Varela, Gonzalo J.
Revealing the Impact of Relaxing Service Sector FDI Restrictions on Productivity in Indonesian Manufacturing
geographic_facet East Asia and Pacific
Indonesia
description The services sector in Indonesia accounts for more than half of total value added, employs more than 55 million workers, and provides 35 percent of overall inputs to the productive sectors of the economy. Improving quality, increasing diversity and reducing costs in service sectors produce is likely to greatly improve Indonesia s competitiveness across all sectors. With a focus on the manufacturing sector, this note argues that relaxing restrictions on competition and on the participation of foreign firms, in services can be expected to improve service sector performance, and lead to economy-wide benefits in terms of productivity and competitiveness. It does so by reviewing the international evidence available, and by presenting new evidence for Indonesia on the positive spillovers that easing restrictions has had on the productivity of domestic manufacturing firms. The economic impact of these spillovers is sizable. In fact, spillovers from service sector reform account for about 8 percent of the observed increase in Indonesian manufacturing productivity over the period 1997-2009.
format Report
author Duggan, Victor
Rahardja, Sjamsu
Varela, Gonzalo J.
author_facet Duggan, Victor
Rahardja, Sjamsu
Varela, Gonzalo J.
author_sort Duggan, Victor
title Revealing the Impact of Relaxing Service Sector FDI Restrictions on Productivity in Indonesian Manufacturing
title_short Revealing the Impact of Relaxing Service Sector FDI Restrictions on Productivity in Indonesian Manufacturing
title_full Revealing the Impact of Relaxing Service Sector FDI Restrictions on Productivity in Indonesian Manufacturing
title_fullStr Revealing the Impact of Relaxing Service Sector FDI Restrictions on Productivity in Indonesian Manufacturing
title_full_unstemmed Revealing the Impact of Relaxing Service Sector FDI Restrictions on Productivity in Indonesian Manufacturing
title_sort revealing the impact of relaxing service sector fdi restrictions on productivity in indonesian manufacturing
publisher World Bank, Jakarta
publishDate 2015
url http://documents.worldbank.org/curated/en/2015/12/19787609/revealing-impact-relaxing-service-sector-fdi-restrictions-productivity-indonesian-manufacturing-policy-note-v
http://hdl.handle.net/10986/23511
_version_ 1764454038444703744