Technology Gap, Competition and Spillovers from Direct Foreign Investment: Evidence From Establishment Data
Direct foreign investment (DFI) has been argued to be an important channel for international technology diffusion. This has led to extensive liberalisation of DFI regimes in many developing countries, including in Indonesia. Using detailed micro-data from the Indonesian manufacturing sector; we examine the effect on productivity from DFI. The results show DFI to benefit locally-owned establishment
