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This article examines trends in and determinants of total factor productivity (TFP) in 28 manufacturing industries in Indonesia over the period 1975-93. The reforms of the mid-1980s appeared to have resulted in a significant acceleration of TFP growth. Among the inter-industry determinants of TFP growth, trade policy and orientation, domestic competitive pressures and ownership factors are singled out for scrutiny. The trade regime and one measure of domestic competition emerge as consistently important explanatory factors.
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Aswicahyono et al. (2002) studied this question.
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