ABSTRACT
The affiliation between multinational and domestic firms is one of the channels supporting technology transfer in a country. This is due to the high level of benefits provided by the organizational relationships, such as job creation, local economy boost, and reputation improvement. Therefore, this study aims to determine the effect of Foreign Direct Investment (FDI) spillovers on domestic firms' productivity. This emphasized the impact level of the MNEs on the productivity of local organizations, across Indonesia's manufacturing industries. In this case, a fixed-effect model was used on panel datasets for 24 types of industries, between 2010 and 2015. The results showed that the benefit of the MNEs’ technological spillovers differed regarding each industry, with no evidence observed for a complete industrial sample.
