The Micro-Dynamics of Catch Up in Indonesian Paper Manufacturing

M. van Dijk, A. Szirmai

    Research output: Contribution to journalArticleAcademicpeer-review

    3 Citations (Scopus)

    Abstract

    In this study we analyze the micro-dynamics of catch-up in Indonesian paper manufacturing, using a two-country plant-level dataset for the period 1975–97. We apply data envelopment analysis (DEA) to measure to what extent Indonesian paper mills are catching up with Finnish mills in terms of technical efficiency. Three questions are addressed: What is the distribution of Indonesian plant technical efficiency vis-à-vis the technological frontier? What is the role of entry, exit, and survival in Indonesia for catch-up in the paper industry as a whole? In what ways do catching-up plants in Indonesia differ from non-catching-up plants? We find that on average the Indonesian paper industry moved closer to the technological frontier during the 1990s. However, catch-up has been a highly localized process in which only a few large establishments have achieved near best-practice performance, while most other plants have stayed behind.
    Original languageEnglish
    Pages (from-to)61-83
    JournalReview of Income and Wealth
    Volume57
    Issue number1
    DOIs
    Publication statusPublished - 2011

    Keywords

    • nonparametric frontier models
    • productivity growth
    • technological-change
    • developing-countries
    • labor productivity
    • real output
    • firm-level
    • innovation
    • efficiency
    • selection

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