Industrialization and deindustrialization in Indonesia

This paper argues that rising food staple prices can pose a significant barrier to the growth of labour-intensive manufacturing by raising real wage rates. This is important because an expanding manufacturing sector has both comparative static and dynamic effects on labour productivity growth. The e...

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Bibliographic Details
Published in:Asia & the Pacific policy studies 2020-01, Vol.7 (1), p.95-111
Main Authors: Grabowski, Richard, Self, Sharmistha
Format: Article
Language:English
Subjects:
Agriculture
Deindustrialization
Developing countries
Economic aspects
Economic development
Economic growth
Employment
Exports
Food
Food prices
GDP
Gross Domestic Product
Growth rate
Indonesia
Industrial development
Industrialization
Irrigation
Labor productivity
LDCs
Manufacturing
Manufacturing industries
Productivity
real wages
Rice
structural change
Value added
Wage rates
Wages
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Summary:This paper argues that rising food staple prices can pose a significant barrier to the growth of labour-intensive manufacturing by raising real wage rates. This is important because an expanding manufacturing sector has both comparative static and dynamic effects on labour productivity growth. The experience of Indonesia is used to illustrate these ideas.
ISSN:2050-2680
2050-2680
DOI:10.1002/app5.295