| Author: |
Aritenang Adiwan F.;Chandramidi Aryani N. |
| Author affiliations: |
a School of Architecture Planning and Policy Development, Institut Teknologi Bandung |
| Source: |
Bulletin of Indonesian Economic Studies Bulletin of Indonesian Economic Studies Bulletin of Indonesian Economic Studies
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| Publication date: |
2020-05-03 |
| Subject terms: |
Special economic zone;;SEZ;;Agglomeration economies;;Firm productivity;;Ex-post evaluation;;Econometric analysis |
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Abstract:
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Various studies have explored the effects of industrial agglomeration and special economic zones (SEZs) in Asia, but there has been a lack of data-driven analysis of SEZ performance. This paper provides a case study on Batam, which has been developed as an SEZ through government-to-government (G2G) cooperation, offering lessons for other developing countries. The study examines the effects of industrial zones, foreign investment and government intervention on firm productivity, using an ex-post evaluation method and econometric models. The paper does not find conclusive evidence that Batam’s status as an SEZ affects firm productivity and growth. Although firm agglomeration proves beneficial for firm productivity, it is not clear that SEZ policy has driven this productivity. The paper argues that government policies should stimulate innovation and inter-firm cooperation to increase knowledge spillovers and technology transfer instead of focusing on attracting investment. |
| Database: |
索引类 |