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CALYPTRA : Jurnal Ilmiah Mahasiswa Universitas Surabaya

Vol. 7 No. 2 (2019): Calyptra : Jurnal Ilmiah Mahasiswa Universitas Surabaya (Maret)

Agnes Wijaya (Jurusan Ilmu Ekonomi Fakultas Bisnis dan Ekonomika Universitas Surabaya)
Suyanto Suyanto (Fakultas Bisnis dan Ekonomika Universitas Surabaya)
Firman Rosjadi Djoemadi (Fakultas Bisnis dan Ekonomika Universitas Surabaya)

Publish Date
01 Mar 2018

This study examines the effect of agglomeration economies on productivity growth in Indonesian manufacturing industries for the period of 2008-2012. Productivity growth is measured by using Fare-Primont Productivity Index. The firm productivity growth is regressed against two types of agglomeration: specialisation and diversity. Then, it is also regressed against set of firm and industry characteristic variables : size,ownership, industry concentration, firm exit and firm entry. The results show that specialisation affects the industry positively while negative effect is encountered for diversity to the aggregate manufacturing industry.

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