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Foreign direct investment and growth in East Asia: lessons for Indonesia
Örebro University, Swedish Business School at Örebro University.
2011 (English)In: Bulletin of Indonesian economic studies, ISSN 0007-4918, E-ISSN 1472-7234, Vol. 47, no 1, p. 35-63Article in journal (Refereed) Published
Abstract [en]

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.

Place, publisher, year, edition, pages
2011. Vol. 47, no 1, p. 35-63
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:oru:diva-18811DOI: 10.1080/00074918.2011.556055ISI: 000288672400003OAI: oai:DiVA.org:oru-18811DiVA, id: diva2:444469
Available from: 2011-09-29 Created: 2011-09-29 Last updated: 2017-12-08Bibliographically approved

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Sjöholm, Fredrik

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Citation style
  • apa
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  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf