The Impact of Special Economic Zones and Government Intervention on Firm Productivity: The Case of Batam, Indonesia

Adiwan Fahlan Aritenang · Aryani N. Chandramidi

39 citations0/0 files storedBulletin of Indonesian Economic Studies

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Economic Zones and Regional Development International Business and FDI Regional Economics and Spatial Analysis

Abstract

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.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 39 citations exist upstream.

References

1991The Competitive Advantage of Nations 1990The Competitive Advantage of Nations 1990Increasing Returns and Economic Geography 2007Trade Liberalization, Intermediate Inputs, and Productivity: Evidence from Indonesia 1990Industrial districts and inter-firm co-operation in Italy 1974Multinational Firms, Competition, and Productivity in Host-Country Markets 2010Trade Liberalization and Firm Productivity: The Case of India 2002Agglomeration and Trade Revisited*

Cited by

2021Have China’s Pilot Free Trade Zones Improved Green Total Factor Productivity?2023Economic zones and local income inequality: Evidence from Indonesia 2022The environmental burdens of special economic zones on the coastal and marine environment: A remote sensing assessment in Myanmar

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.