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Leveraging Foreign Direct Investment in Indonesia : Assessing Foreign Investor’s Use of Domestic Suppliers (Английский)

After Indonesia liberalized investment rules, foreign direct investment (FDI) increased. The government promoted linkages between foreign investors and local firms, but the impact on employment and productivity remains to be determined. Manufacturing survey data indicate a modest role for local suppliers, with three-fourths of jobs from FDI created directly within foreign firms and only one-fourth upstream. Evidence suggests success in policies encouraging...
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