Linkage development as industrial policy: The state and structural transformation in resource-rich countries

Imaduddin Abdullah and Andy Sumner

No wp-2025-29, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: This paper examines Indonesia's upgrading within the global nickel value chain. Indonesia's transformation from a major nickel ore exporter into an integrated producer of refined nickel products offers important lessons for resource-rich developing countries seeking economic diversification. Drawing on evidence from Indonesia's strategic shift towards midstream and downstream manufacturing, this paper examines how policy choices and state intervention can reshape a country's position in global value chains.

Keywords: Structural transformation; Industrialization; Industrial policy; Indonesia (search for similar items in EconPapers)
Date: 2025
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