Industrialization and deindustrialization in Indonesia

Richard Grabowski and Sharmistha Self

Asia and the Pacific Policy Studies, 2020, vol. 7, issue 1, 95-111

Abstract: 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.

Date: 2020
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