Title: Knowledge spillover through foreign direct investment in textile industry

Authors: Horas Djulius; Juanim Juanim; Ina Ratnamiasih

Addresses: Faculty of Economics, Universitas Pasundan, Bandung-40116, Indonesia ' Faculty of Economics, Universitas Pasundan, Bandung-40116, Indonesia ' Faculty of Economics, Universitas Pasundan, Bandung-40116, Indonesia

Abstract: The purpose of this study is to identify whether the foreign direct investment can prompt the occurrence of knowledge spillover on textile companies that was caused by demonstration effect, labour turnover, as well as vertical linkage. The research method used is a mixed method. The result of quantitative approach shows that foreign direct investment indeed prompts the occurrence of knowledge spillover in the textile industry, and the labour turnover causes this. On the other hand, the result of qualitative approach shows that innovation in the textile industry, for the most part, is caused by demonstration effect that was shown by the competitor.

Keywords: foreign direct investment; FDI; knowledge spillover; textile industry; mixed method.

DOI: 10.1504/IJEPEE.2018.091026

International Journal of Economic Policy in Emerging Economies, 2018 Vol.11 No.1/2, pp.12 - 25

Received: 15 Sep 2015
Accepted: 20 Sep 2015
Published online: 09 Apr 2018 *

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