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...

Technology import raises industrial competitiveness through increased productivity and efficiency of the concerned units. Thus, it is necessary for developing countries to have liberal regimes in favor of technology import. Increases in productivity and efficiency lead to competitiveness....

Many studies discuss the “de-industrialization” or “servicification” of economies in both developed and developing countries. Such studies rely on statistics that distinguish a manufacturing from a service sector. But in the age of global value chains (GVCs), it becomes increasingly...