Global Crisis and Country's Competitiveness: Lessons from Indonesia and Malaysia

Anton Setyawan
European Research Studies Journal, Volume XIV, Issue 3, 103-118, 2011
EOI: 10.11214/thalassinos.14.03.006

Abstract:

This study examines the impact of 2009 global financial crisis to Indonesia and Malaysia. The framework of this study is Porter Diamond Model of Competitiveness. By using fixed effect panel data regression analysis this study analyze the four dimension of Porter model. In this study, they are four model regressions as a proxy of factor condition, demand condition, related and supporting industries model and Firm strategy, structure, and rivalry model. This study uses data from Asian Development Bank Annual Report from 1999-2008. The result shows global financial crisis gives bigger impact to Malaysia than Indonesia. The global financial crisis also has effect on each country’s competitiveness. Indonesia survive from the crisis since this country has a strong private consumption, while Malaysia still have competitive advantage on human resource.


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