Indonesian manufacturing exhibits a dual structure, with a sector composed of a few dominant large and long-lived companies, along with a sector composed of numerous small and medium enterprises and displaying dynamic turnover. Using manufacturing plant-level panel data (1975-95), we decompose...

This paper estimates new elasticities of value added with respect to labour and capital in Indonesian manufacturing, controlling for the simultaneity problem that potentially exists between the choice of input levels and a productivity shock (such as an increase in productivity due to new...

Summary Using panel data from the Indonesian manufacturing industry during the Suharto era (1975-95), we assess the impact of plant-level corruption on output and productivity growth. In support of the "grease the wheels" hypothesis and the view of an Asian paradox, we find that corruption,...

The contribution of micro-entrepreneurship to development has featured prominently in recent economic and policy debates. Using panel data from the Indonesia Family Life Survey over a long period (1993-2007) marked by an important economic crisis in 1997, this paper investigates the impact of...