SEGMENTED DEVELOPMENT AND THE WAY PROFITS GO: THE CASE OF INDONESIA*

Steven Keuning

Review of Income and Wealth, 1985, vol. 31, issue 4, 375-395

Abstract: In most developing countries profits account for a large proportion of national income, but their origin and use are widely divergent, related to the nature of ownership of the enterprise. Here an institutional classification of productive activities is developed and illustrated by the way profits go in Indonesia. By branch of industry they accrue to four categories of owners (foreign, public, private national incorporated, unincorporated). Next imputed labour income of the self‐employed is separated in order to arrive at the functional distribution of income by sector, and lastly the destination (depreciation, interest, taxes, dividends, retained earnings) of each type of corporate capital income is shown. The estimates indicate a segmentation of activities, with regard to ownership as well as factor shares.

Date: 1985
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https://doi.org/10.1111/j.1475-4991.1985.tb00519.x

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Working Paper: Segmented development and the way profits go: the case of Indonesia (1984)
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