INDUSTRIAL ESTATE, FIRMS’ PRODUCTIVITY, AND INTERNATIONAL TRADE RELATIONSHIP: THE CASE OF INDONESIAN MANUFACTURING FIRMS
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Abstract
Abstrak
Kawasan industri diyakini dapat mendukung perkembangan sektor industri di negara berkembang melalui fasilitas infrastruktur yang lebih baik, akses ke industri pendukung serta limpahan teknologi dan informasi. Ketiga faktor tersebut diperkirakan dapat mendorong produktivitas dan aktivitas ekspor perusahaan manufaktur di dalam kawasan industri. Berbagai penelitian terdahulu masih memberikan hasil yang beragam mengenai hubungan ketiga variabel ini. Oleh karena itu, penelitian ini bertujuan untuk mengidentifikasi hubungan antara kawasan industri dengan tingkat produktivitas dan kegiatan ekspor pada studi kasus perusahaan manufaktur di Indonesia. Penelitian ini memperkenalkan penggunaan dari entropy balancing, salah satu teknik matching methods dengan unit analisis level data perusahaan. Perbedaan jumlah observasi yang cukup signifikan antara perusahaan di dalam dan di luar kawasan industri memotivasi penggunaan teknik matching methods agar data penelitian menjadi seimbang. Treatment (perlakuan) dari penelitian ini adalah ketika perusahaan berada di kawasan industri. Terdapat dua variabel keluaran yakni tingkat produktivitas dan aktivitas ekspor. Hasil penelitian menunjukkan bahwa berada di Kawasan Industri mendorong tingkat produktivitas, namun gagal untuk mempromosikan kegiatan ekspor.
Abstract
Many believe that the industrial estate could encourage the industrial sector in developing countries due to its better infrastructure, access to supporting industries, and the market as well as technology and information spillover. These factors could lead to a higher productivity level and export activities of manufacturing firms inside the industrial estate. Some previous studies still provide a mixed result regarding the relationship between these three variables. Thus, this paper contributes to the related study by examining the relationship between an industrial estate and both productivity level and export activity in the case of Indonesian Manufacturing Firms. The paper introduces the practice of entropy balancing, one of matching methods along with firm-level data as a unit of analysis. A significant difference in the number of observations between firms inside and outside the industrial estate motivates the usage of matching methods technique, so the data become balanced. The treatment is when the firms being in the industrial estate. There are two outcomes variables, which are productivity level and export activity. The result found that being industrial estate improves firms’ productivity, yet it fails to promote export activity.
JEL Classification: L23, L52, L60
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