Proceedings of the 19th International Symposium on Management (INSYMA 2022)

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Potential Spillover from Foreign Companies

Evidence from the Indonesian Convection Industry

Authors
Cynthia Yohanna Kartikasari1, *, Suyanto Suyanto1
1University of Surabaya, Surabaya, Indonesia
*Corresponding author. Email: cynthiayohanna@staff.ubaya.ac.id
Corresponding Author
Cynthia Yohanna Kartikasari
Available Online 5 December 2022.
DOI
10.2991/978-94-6463-008-4_37How to use a DOI?
Keywords
Foreign Direct Investment; Technical Efficiency; Indonesian convection sector
Abstract

The textile industry in Indonesia is fascinating to study due to its essential role in the Indonesian economy and as a strategic sector for employment. While imported items continue to dominate raw material supply in this sector, Foreign Direct Investment (FDI) inflows will bring about externality effects on a firm’s efficiency. This current study examines the spillover effect of Foreign Direct Investment on firms’ technical efficiency in Indonesia’s convection industry (ISIC 14111). The study used Data Envelopment Analysis (DEA) models to calculate technical efficiency scores for each firm in the convection sector from 2010 to 2013. Changes in productivity levels are projected to occur due to technical efficiency changes. The findings indicate that Foreign Direct Investment can positively affect changes in technical efficiency through capital-labor ratio, foreign ownership, and imported material.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 19th International Symposium on Management (INSYMA 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
5 December 2022
ISBN
10.2991/978-94-6463-008-4_37
ISSN
2352-5428
DOI
10.2991/978-94-6463-008-4_37How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Cynthia Yohanna Kartikasari
AU  - Suyanto Suyanto
PY  - 2022
DA  - 2022/12/05
TI  - Potential Spillover from Foreign Companies
BT  - Proceedings of the 19th International Symposium on Management (INSYMA 2022)
PB  - Atlantis Press
SP  - 282
EP  - 286
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-008-4_37
DO  - 10.2991/978-94-6463-008-4_37
ID  - Kartikasari2022
ER  -