TO SQUEEZE OR NOT TO SQUEEZE: CHARACTERISING THE INVESTMENT CLIMATE IN THE CITY OF MANADO, INDONESIA

Neil McCulloch (), Arianto Patunru and Christian von Luebke

No 200917, LPEM FEBUI Working Papers from LPEM, Faculty of Economics and Business, University of Indonesia

Abstract: Many countries have implemented investment climate reforms to try and boost growth and investment. But similar reforms have often given rise to quite different results in different countries. We hypothesize that success depends critically on the ability of local political actors to forge effective relations with the private sector. We explore this hypothesis through a detailed qualitative case study of the political economy of investment in the city of Manado, Indonesia. We find that the city bureaucracy and local parliament are largely focused on rent-seeking from the local private sector and that city planning is poorly implemented. Despite poor governance, investment is booming. Apart from exogenous factors, we find that local investment growth is sustained by hand-in-hand relationships between Manado’s government leadership and large retail and property investors.

Date: 2009-17, Revised 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
https://lpem.org/repec/lpe/papers/WP200917.pdf First version, 2009 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lpe:wpaper:200917

Access Statistics for this paper

More papers in LPEM FEBUI Working Papers from LPEM, Faculty of Economics and Business, University of Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Arianto Patunru ().