Foreign Networks and Exports: Results from Indonesian Panel Data

Reprint No. 2008:31

Author(s): Fredrik Sjöholm and Sadayuki TakiiYear: 2008 Title: Developing Economies Volume (No.): 46 (4) Pages: 428–446

Most firms and plants in developing countries produce only for the domestic market and few are able to export. One plausible hypothesis is that foreign networks decrease export costs and that plants with large amounts of such networks will be relatively likely to start exporting. We focus on two types of foreign networks: foreign ownership and imports of intermediate products. Our results suggest that plants in Indonesian manufacturing with any foreign ownership are substantially more likely to start exporting than wholly domestically owned plants. The results remain robust to alternative model specifications and after controlling for other plant characteristics. There is no effect on exports of imports of intermediate products.

Sjöholm, Fredrik and Sadayuki Takii (2008), "Foreign Networks and Exports: Results from Indonesian Panel Data". Developing Economies 46(4), 428–446.

Fredrik Sjöholm


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