Firm performance and industrial dynamics in Indonesia: the role of location
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PhD Seminar (Econ)
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The recent literature on firm dynamics suggests location-specific factors matter for firm survival and growth. Using Indonesia’s firm-level data for the period 1990–2012, this research examines the importance of various types of location-specific factors for firm survival and growth in Indonesia. The results indicate that location-specific factors do matter for firm survival and growth. In particular, the population density, road density, and electrification rate of regions affect the likelihoods of firm survival and growth. Evidence will also be presented on the importance of agglomeration economies. A discussion of the policy implications of the findings will be provided.
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