Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/87217
Authors: 
Andadari, Roos K.
de Groot, Henri L.F.
Rietveld, Piet
Year of Publication: 
2012
Series/Report no.: 
Tinbergen Institute Discussion Paper 12-072/3
Abstract: 
This paper exploits micro firm level data to examine the impact of spatial clustering and links to foreign buyer networks on firm performance in the wood furniture industry in Central Java, Indonesia. The analysis is based on an annual manufacturing survey. We identify the impact of specialization of the cluster, diversification, and links to foreign buyer networks. For this purpose, a production function framework is developed. The results lend support to the view that clustering of large and medium scale specialized firms improves firm performance, while clustering of small scale specialized firms and clustering of diverse firms are not conducive to firm performance. We also find a clear positive association between involvement in exporting activities and firm performance.
Subjects: 
Productivity
Externalities
Wood Furniture Industry
Indonesia
JEL: 
D20
R11
R32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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