Structural transformation and inclusive growth: Kuznets' 'developer's dilemma' in Indonesia

Kyunghoon Kim, Arriya Mungsunti, Andy Sumner and Arief Yusuf

No wp-2020-31, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: We focus on special characteristics of the manufacturing sector, in terms of employment generation and productivity growth, that enable the rapid, resilient economic catch-up of developing countries. We consider the 'developer's dilemma' and the relationship between manufacturing value added or employment shares and trends in income inequality. In Indonesia, structural transformation was growth-enhancing and economic growth inclusive during the decades before the 1997-98 Asian financial crisis.

Keywords: Structural transformation; Inclusive growth; Indonesia; Industrial policy; Social assistance (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-sea
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Citations: View citations in EconPapers (1)

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