Determinants of plant performance dynamics: Empirical analysis of the manufacturing sector in Indonesia, 1990-2000

Shunsuke Managi, Shinji Kaneko

Research output: Contribution to journalArticlepeer-review

Abstract

We identify determinants of plant dynamics and find their differences before, during, and after the Asian financial crisis. The results show that the distinction of the crisis is important and the effects of the crisis do not seem to persist after 1998. Furthermore, we reject Gibrat's law as the right functional form to describe plant growth. We are not able to support empirically the theoretical results that smaller and efficient plants tend to grow faster than larger and inefficient plants with the exception of the crisis period. The results reflect that there was a trickle down effect of economic development.

Original languageEnglish
Pages (from-to)273-290
Number of pages18
JournalWorld Review of Entrepreneurship, Management and Sustainable Development
Volume4
Issue number4
DOIs
Publication statusPublished - 2008

Keywords

  • Asian financial crisis
  • Indonesian manufacturing
  • Plant dynamics

ASJC Scopus subject areas

  • Business and International Management
  • Renewable Energy, Sustainability and the Environment
  • Economics and Econometrics

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