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Transforming Indonesia : Structural change in a regional perspective 1968-2010

Axelsson, Tobias LU and Palacio, Andrés LU (2017) In Lund Papers in Economic History: Development Economics
Abstract
Since 1968, Indonesia has been among the few developing countries able to sustain per capita income growth over 5%. However, poverty and surplus labor are still main features of the economy. We ask to what extent the dual nature of growth has stimulated structural change, or just rewarded a particular sector or region. We find that the emblematic State support to agriculture has not untapped the potential growth in labour reallocation. Despite the income diversification within and outside agriculture, the linkages between sectors and regions remain weak. For catching up, the integration of the outer regions into the economy must still go through agriculture, investment in human capital, infrastructure, social policies and local... (More)
Since 1968, Indonesia has been among the few developing countries able to sustain per capita income growth over 5%. However, poverty and surplus labor are still main features of the economy. We ask to what extent the dual nature of growth has stimulated structural change, or just rewarded a particular sector or region. We find that the emblematic State support to agriculture has not untapped the potential growth in labour reallocation. Despite the income diversification within and outside agriculture, the linkages between sectors and regions remain weak. For catching up, the integration of the outer regions into the economy must still go through agriculture, investment in human capital, infrastructure, social policies and local capabilities. (Less)
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author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
agriculture, regional structural change, growth, stagnation, shrinking, Indonesia
in
Lund Papers in Economic History: Development Economics
issue
164
pages
21 pages
publisher
Department of Economic History, Lund University
ISSN
1101-346X
language
English
LU publication?
yes
id
e9b738b8-7bf0-4840-ae14-ee0403ec6213
date added to LUP
2017-10-11 08:51:18
date last changed
2017-10-11 10:27:37
@misc{e9b738b8-7bf0-4840-ae14-ee0403ec6213,
  abstract     = {Since 1968, Indonesia has been among the few developing countries able to sustain per capita income growth over 5%. However, poverty and surplus labor are still main features of the economy. We ask to what extent the dual nature of growth has stimulated structural change, or just rewarded a particular sector or region. We find that the emblematic State support to agriculture has not untapped the potential growth in labour reallocation. Despite the income diversification within and outside agriculture, the linkages between sectors and regions remain weak. For catching up, the integration of the outer regions into the economy must still go through agriculture, investment in human capital, infrastructure, social policies and local capabilities.},
  author       = {Axelsson, Tobias and Palacio, Andrés},
  issn         = {1101-346X},
  keyword      = {agriculture,regional structural change,growth,stagnation,shrinking,Indonesia},
  language     = {eng},
  note         = {Working Paper},
  number       = {164},
  pages        = {21},
  publisher    = {Department of Economic History, Lund University},
  series       = {Lund Papers in Economic History: Development Economics},
  title        = {Transforming Indonesia : Structural change in a regional perspective 1968-2010},
  year         = {2017},
}