The author discusses the relationship between trade propensities and foreign ownership shares in Indonesian manufacturing in 1992 and 1994. After reviewing the theoretical principles underlying the empirical analysis, he scrutinizes patterns of exports and imports, as well as patterns of trade...

Foreign multinational corporations (MNCs) have accounted for important shares of employment and production in Indonesian manufacturing since 1975, and these shares increased especially rapidly in the early to mid-1990s. These increases were concentrated in the machinery industries and in MNCs...