Winners and losers during a deep economic crisis: Firm-level evidence from Indonesian Manufacturing

Dionisius Narjoko, Hal Hill*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

46 Citations (Scopus)

Abstract

What happens to firms during periods of deep economic crisis? Depending on the nature of the crisis, the general effects are well known. However, owing to data availability, there are relatively few detailed firm-level studies. With the aid of an unusually rich database, the present paper investigates the effects of Indonesia's 1997-1998 crisis on manufacturing establishments. Consistent with studies of other crisis episodes, foreign ownership and prior export orientation are found to be highly significant determinants of survival and recovery. The effects of firm size are ambiguous. The industry in which firms are located, in particular its factor proportions, is also found to be significant.

Original languageEnglish
Pages (from-to)343-368
Number of pages26
JournalAsian Economic Journal
Volume21
Issue number4
DOIs
Publication statusPublished - Dec 2007

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