Production Externalities in the Wood Furniture Industry in Central Java
Tinbergen Institute Discussion Paper No. 12-072/3
26 Pages Posted: 19 Jul 2012
Date Written: July 18, 2012
Abstract
This paper exploits micro firm level data to examine the impact of spatial clustering and links to foreign buyer networks on firm performance in the wood furniture industry in Central Java, Indonesia. The analysis is based on an annual manufacturing survey. We identify the impact of specialization of the cluster, diversification, and links to foreign buyer networks. For this purpose, a production function framework is developed. The results lend support to the view that clustering of large and medium scale specialized firms improves firm performance, while clustering of small scale specialized firms and clustering of diverse firms are not conducive to firm performance. We also find a clear positive association between involvement in exporting activities and firm performance.
Keywords: productivity, externalities, wood furniture industry, indonesia
JEL Classification: D20, R11, R32
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities
-
By Edward L. Glaeser and David C. Maré
-
Micro-Foundations of Urban Agglomeration Economies
By Gilles Duranton and Diego Puga
-
Micro-Foundations of Urban Agglomeration Economies
By Gilles Duranton and Diego Puga
-
Cities, Skills, and Regional Change
By Edward L. Glaeser, Giacomo A. M. Ponzetto, ...
-
Cities, Skills, and Regional Change
By Edward L. Glaeser, Giacomo A. M. Ponzetto, ...
-
By Edward L. Glaeser, Jed Kolko, ...