Artikel
The effect of knowledge spillover on productivity: Evidence from manufacturing industry in Indonesia
In this study, we analyze the effect of knowledge spillover on productivity in the Indonesian manufacturing industry from 2010 to 2014 using inter-sectoral linkages and inter-regional linkages. For the first time in the literature, we apply an input-output table and geographic distance between regions as the weight matrix in spatial econometric estimation to measure the productivity spillover. We find that: (1) productivity spillover from transactions of intermediate goods in vertical linkage (customer-supplier) is dominated by inter-industry downstream and intra-industry upstream; (2) the adoption of foreign technology by domestic firms through imported materials is more vital than foreign direct investment; (3) productivity spillover created from capital-intensive industries is higher than that from labor-intensive industries; (4) in productivity spillover flows through inter-regional spillover and intra-regional spillover, the latter creates higher productivity spillover than the former. This implies that the shorter the geographic distance, the narrower the technology gap; (5) investments in human capital and physical capital are a prerequisite for absorbing technology and thus essential absorptive capacity factors for firms/industries/regions as they narrow down the technology gap between developing and advanced firms/industries/regions.
- Language
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Englisch
- Bibliographic citation
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Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 9 ; Year: 2021 ; Issue: 1 ; Pages: 1-31
- Classification
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Wirtschaft
- Subject
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inter-sectoral
linkage
productivity
spatial
spillover
- Event
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Geistige Schöpfung
- (who)
-
Kuswardana, Irvan
Nachrowi, Nachrowi D.
Falianty, Telisa
Damayanti, Arie
- Event
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Veröffentlichung
- (who)
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Taylor & Francis
- (where)
-
Abingdon
- (when)
-
2021
- DOI
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doi:10.1080/23322039.2021.1923882
- Handle
- Last update
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10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Kuswardana, Irvan
- Nachrowi, Nachrowi D.
- Falianty, Telisa
- Damayanti, Arie
- Taylor & Francis
Time of origin
- 2021
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