Foreign Direct Investment (FDI) has increased in importance over the last decades, globally as well as in Indonesia. We examine how such inflows of FDI affects value added in Indonesia. The effect is positive: foreign firms generate relatively high levels of value added and they also seem to...

The effect of trade liberalization on the spatial concentration of economic activities is not straightforward. It has, on the one hand been widely argued that protectionism increase spatial concentration when firms locate close to the main domestic markets, but it has also been argued that trade...