The Effect Of Manufacturing Characteristics On The Export Performance Of Manufacturing In Indonesia

Abstract The research aims are to estimate a structural model of the local competitiveness and to estimate FDI on the export performance of the manufacturing sector in Indonesia. This study uses data panel 33 provinces in Indonesia with time series 2004-2012. The results show that local competitiveness does not have direct effect on the performance of exports but it affects through specialization level the level of diversity employment and economic growth. Furthermore FDI has direct and significant effect on the export performance but it does not affect through specialization level the level of diversity employment and economic growth.