Determinants of Foreign Direct Investment in Indonesia

We examine what determines the flow of foreign direct investment (FDI) in Indonesia, focusing on the role of institutional measures. A knowledge-and-physical-capital (KPC) model is applied to a panel dataset that covers 42 of Indonesia’s FDI partners from 2004 to 2012. Evidence shows that both horizontal and vertical FDIs coexist in the bilateral aggregate data of Indonesia’s FDI flows, but horizontal FDI appears to be dominant. This can be explained by the market size (proxied by the total GDP of both countries and similarity in incomes per capita) and the relative factor endowments (proxied by skilled labor and physical capital). The vertical FDI, on the other hand, could be only explained by the significant effect of unskilled labor. Institutional factors, particularly corruption, are apparently important in affecting Indonesia’s bilateral FDI flows. The results also show that a higher FDI level in Indonesia positively correlates with macroeconomic factors, open policy factors, and utility infrastructure factors.

Where to Revitalize, and How? A Rural Typology Zoning for China

Under China’s Rural Revitalization program, it is essential to accurately determine the prospects of revival or decay for the villages alongside specific goals and paths, which existing literature lacks a systematic coverage. Based on rural typology theories, this paper proposes an analytical framework to determine the type of village revitalization from the perspective of factor endowments. Utilizing five groups of 45 indicators characterizing the natural, socio-economic, and cultural endowments of villages, this paper applies the Self-Organizing Mapping neural network to cluster 2,388,579 natural villages in 48,322 townships across the nation into the four basic types of rural revitalization as directed by China’s Strategic Plan for Rural Revitalization (2018–2022): (1) Agglomerative Promotion, (2) Suburban Annexation, (3) Special Endowment-based Development, and (4) Out-migration and Relocation. The results of cluster analysis are spatially visualized to form a national rural revitalization zoning map at the township level, the first attempt to our knowledge. We conclude the paper with discussions on the revitalization paths of the various types of villages, particularly the seemingly gloomy prospect of 2/3 of the villages falling into the fourth category, and ways to interpret the deterministic nature of the conclusion. The paper expands the understanding of rural typology to a national scale with both innovative categorization processes and strong linkages to revitalization practices.

How Can National Competitiveness of Less Developed Countries be Enhanced? : A Case Study of Laos

<p>The current literature focuses primarily on the national competitiveness of developed or developing economies. However, minimal research exists on understanding the national competitiveness of less developed countries (LDCs) whose strengths in factor endowments, government institutions and the extent of global integration are not the same as those of developed or developing countries. This study aims to fill this research gap by exploring factors contributing to the competitiveness of Laos. Laos is a small, poor and land-locked country in Southeast Asia with rich natural resources. To achieve the study objectives, 20 semi-structured interviews were conducted with senior government officials, industrial representatives, professors and NGOs in Laos. The findings suggest three key factors are critical for enhancing Lao competitiveness: factor endowments, the role of government, and global integration. Laos‘ factor endowments include hydropower, mining, agriculture, garment and textile industries, and services. Laos is interacting more with the global economy as it gets set to embrace membership of the World Trade Organisation after approximately 15 years of membership of ASEAN. The government is playing a critical role by developing Lao factor endowments and developing policies required for global integration. However, the country faces challenges of value addition to the existing natural resources, developing and leveraging human capital, and further improvement in rules and regulations.</p>

How Can National Competitiveness of Less Developed Countries be Enhanced? : A Case Study of Laos

<p>The current literature focuses primarily on the national competitiveness of developed or developing economies. However, minimal research exists on understanding the national competitiveness of less developed countries (LDCs) whose strengths in factor endowments, government institutions and the extent of global integration are not the same as those of developed or developing countries. This study aims to fill this research gap by exploring factors contributing to the competitiveness of Laos. Laos is a small, poor and land-locked country in Southeast Asia with rich natural resources. To achieve the study objectives, 20 semi-structured interviews were conducted with senior government officials, industrial representatives, professors and NGOs in Laos. The findings suggest three key factors are critical for enhancing Lao competitiveness: factor endowments, the role of government, and global integration. Laos‘ factor endowments include hydropower, mining, agriculture, garment and textile industries, and services. Laos is interacting more with the global economy as it gets set to embrace membership of the World Trade Organisation after approximately 15 years of membership of ASEAN. The government is playing a critical role by developing Lao factor endowments and developing policies required for global integration. However, the country faces challenges of value addition to the existing natural resources, developing and leveraging human capital, and further improvement in rules and regulations.</p>

Riding the Biotechnology Wave: A Mixed-Methods Analysis of Malaysia's Emerging Biotechnology Industry

<p>Building a sustainable bioeconomy requires strategic alliances, intellectual property,funding and talent. The research focus of this empirical study was to assess Malaysian biotechnology companies regarding their opinions on priorities and capabilities necessary to establish a thriving bioeconomy. The research questions that form the basis of this paper explore the extent to which initial factor endowments affect the trajectory of biotechnology industry development and how Malaysia should prioritise, mobilise and coordinate resources to build a bioeconomy. A mixed methods approach using qualitative interviews and case studies, as well as a quantitative survey, indicated that respondents advocated a resource-based-view in terms of resource allocation and agglomeration towards building Malaysia's bioecnomy. That is, there was strong support to leverage Malaysia's existing capabilities in agriculture and biofuels to derive value-added products towards gaining leadership positions in these respective biotechnology sectors globally. Access to funding and talent emerged as the highest priority capabilities necessary for commercialising discoveries, conducting research and development and accelerating innovation. Respondents perceived the government as having a 'very important' role in building and accelerating the Malaysian biotechnology industry. The gap between required capabilities and strategic priorities provides a framework within which the government may play a central role in coordinate, accelerating and resourcing Malaysia's nascent bioeconomy.</p>

Riding the Biotechnology Wave: A Mixed-Methods Analysis of Malaysia's Emerging Biotechnology Industry

<p>Building a sustainable bioeconomy requires strategic alliances, intellectual property,funding and talent. The research focus of this empirical study was to assess Malaysian biotechnology companies regarding their opinions on priorities and capabilities necessary to establish a thriving bioeconomy. The research questions that form the basis of this paper explore the extent to which initial factor endowments affect the trajectory of biotechnology industry development and how Malaysia should prioritise, mobilise and coordinate resources to build a bioeconomy. A mixed methods approach using qualitative interviews and case studies, as well as a quantitative survey, indicated that respondents advocated a resource-based-view in terms of resource allocation and agglomeration towards building Malaysia's bioecnomy. That is, there was strong support to leverage Malaysia's existing capabilities in agriculture and biofuels to derive value-added products towards gaining leadership positions in these respective biotechnology sectors globally. Access to funding and talent emerged as the highest priority capabilities necessary for commercialising discoveries, conducting research and development and accelerating innovation. Respondents perceived the government as having a 'very important' role in building and accelerating the Malaysian biotechnology industry. The gap between required capabilities and strategic priorities provides a framework within which the government may play a central role in coordinate, accelerating and resourcing Malaysia's nascent bioeconomy.</p>

China’s Industrial Development Strategies and Policies

China has adopted a transition strategy and industrial policies pragmatically according to its economic reality since the reform and opening up started in 1979. The organic combination of an effective market with a facilitating state was the main reason for the success of China’s economy in the past four decades. In the process of China’s economic development, industrial policies have played a crucial role in both industrial upgrading and technological progress. Relying on the comparative advantage—following strategy, China has fully utilized its latecomer advantage. Chinese enterprises learn advanced technologies from developed countries when the opportunities exist and do indigenous innovation when needed. Pragmatism and learning capacity has been the most important endowments and comparative advantages of the Chinese government and enterprises. With learning capacity, the government and enterprises can pragmatically explore the comparative advantage of the existing factor endowments and convert latent comparative advantages into competitive advantages to promote continuous transformation, upgrading, and sustainable development.

Factor Endowments, Economic Integration, Round-Tripping, and Inward FDI: Evidence from the Baltic Economies

This paper studies the location choice of foreign multinational firms in the Baltic economies of Estonia, Latvia, and Lithuania using a knowledge-and-physical capital model across 2004–2017. We used the Bayesian model averaging estimation method to investigate a set of possible factors that drive inward FDI. Our analysis demonstrates that factor endowments play a dominant role in driving vertical foreign direct investment, while external market barriers generate “tariff-jumping” FDI. Our analysis quantifies the effects of round-trip FDI, European integration, and external bilateral free trade agreements vis-à-vis inward FDI in the Baltics.

Peran Pendidik Dalam Mengembangkan Kreativitas Seni Anak Usia Dini Di Kelompok Bermain Koronka Bawen Kabupaten Semarang

Developing creativity in the classroom is a major factor that matters. Educators who understand creativity can help learners in developing creativity. Educators who train and teach creativity must be educators who have a creative soul. The outline of the issue examined was how the role of educators in developing early childhood art creativity in Group Play Koronka, how to factor endowments development early childhood art creativity in Group Play Koronka, as well as how the factors restricting the development of creativity in early childhood Arts Groups Play Koronka. data collection is carried out by means of observation, interview and documentation. The validity of the data obtained through triangulation of sources and methods. Data analysis starts from data collection through the reduction of the data, the presentation of data, and the withdrawal of the conclusion. The results obtained in this research is the role of educators include educating, teaching, guiding, directing, train, assess, and evaluate his protégé participant about the creativity of art. Educators who creatively very influential towards the participants of his protégé. In addition, the factors that support the creativity of art comes from the support of parents as well as adequate infrastructure and facilities. While the factors that inhibit the creativity of art located on educators or parents who break the idea put forth child, competition between the child, the limitation on the child's curiosity, many educators forbid children, as well as parenting parents too keep an eye on the child.