[ABSTRAK
Penelitian ini bermaksud untuk melihat beberapa aspek yang belum diteliti dalamstudi tentang pengaruh aglomerasi terhadap keputusan lokasi perusahan asing diindustri pengolahan Indonesia. Fokus ditekankan pada diferensiasi dua jenisaglomerasi berdasarkan jenis eksternalitas yang dihasilkan, yaitu localizationexternalities dalam aglomerasi perusahaan dalam industri yang sama (intraindustri)dan urbanization externalities dalam aglomerasi perusahaan berbagaijenis industri (inter-industri). Data tingkat perusahaan bersumber dari SensusEkonomi 2006. Model conditional logit (McFadden, 1974) digunakan untukmengestimasi peluang dari keputusan lokasi pendirian perusahaan asing diindustri pengolahan Indonesia. Aglomerasi intra-industri didapati memilikipengaruh yang positif terhadap keputusan lokasi perusahaan FDI. Namun,aglomerasi inter-industri terbukti tidak memiliki pengaruh terhadap keputusanlokasi perusahaan FDI. Temuan ini menunjukkan bahwa eksternalitas lokalisasilebih dominan dibandingkan eksternalitas urbanisasi. Walaupun begitu, pengaruheksternalitas dari aglomerasi intra-industri ini relatif sangat kecil. Keputusanlokasi perusahaan asing di industri pengolahan Indonesia masih sangatdipengaruhi oleh ketersediaan sumber daya produksi. Sedangkan ketersediaanpasar tidak memberikan pengaruh pada keputusan lokasi perusahaan asing.

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ABSTRAK
This research intends to address several unexplored aspects in the study of theeffect of agglomeration toward foreign firms’ location decisions in Indonesia’sprocessing industries. The main focus is the distinction between two types ofagglomerations based on the different externalities that each one produced, whichare localization externalities among firms in the same industry (intra-industry) andurbanization externalities among firms in diverse industries (inter-industry). Thefirm-level data is acquired from the Indonesian Economic Census of 2006.Conditional Logit Model (McFadden, 1974) is used to estimate the probabilitiesof newly created foreign firms’ location decisions in a particular province. Intraindustryagglomeration is found to have a positive influence toward the locationdecisions of foreign firms. On the other hand, inter-industry agglomeration seemsto have no influence what so ever to the foreign firms’ location decisions. Theseresults show that localization externalities are far more dominant compared tourbanization externalities. However, this intra-industry externality is considerablysmall. In fact, foreign firms’ location decisions are still heavily influenced by theavailability of production resources. While the availability of market does nothave any effects to the foreign firms’ location decisions., This research intends to address several unexplored aspects in the study of theeffect of agglomeration toward foreign firms’ location decisions in Indonesia’sprocessing industries. The main focus is the distinction between two types ofagglomerations based on the different externalities that each one produced, whichare localization externalities among firms in the same industry (intra-industry) andurbanization externalities among firms in diverse industries (inter-industry). Thefirm-level data is acquired from the Indonesian Economic Census of 2006.Conditional Logit Model (McFadden, 1974) is used to estimate the probabilitiesof newly created foreign firms’ location decisions in a particular province. Intraindustryagglomeration is found to have a positive influence toward the locationdecisions of foreign firms. On the other hand, inter-industry agglomeration seemsto have no influence what so ever to the foreign firms’ location decisions. Theseresults show that localization externalities are far more dominant compared tourbanization externalities. However, this intra-industry externality is considerablysmall. In fact, foreign firms’ location decisions are still heavily influenced by theavailability of production resources. While the availability of market does nothave any effects to the foreign firms’ location decisions.]