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:	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
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

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

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