GEP Research Paper 03/47
Foreign Networks and Exports: Results from Indonesian Panel Data
Fredrik Sjöholm and Sadayuki Takii
Abstract
Participation in exports differs substantially between plants even within industries. One plausible hypothesis is that foreign networks decrease export-costs and that plants with large amounts of such networks will be relatively likely to start export. We focus on two types of foreign networks: foreign ownership and import of intermediate products. Our results suggest that plants in Indonesian manufacturing with any foreign ownership are substantially more likely to start export than wholly domestically-owned plants. The results remain robust to alternative model specifications and after controlling for other plant characteristics. There is no effect on export from import of intermediate products.
Issued in November 2003.
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