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Bringing state-owned entities back into the industrial policy debate: The case of Indonesia

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  • Kim, Kyunghoon
  • Sumner, Andy

Abstract

Discussions on the developing world's industrial policies have largely neglected the role of state-owned entities. This paper argues that the resurgence of state capitalism has been, in part, the response of developing countries to the recent pattern of structural transformation involving weak manufacturing. Using the case of Indonesia, this paper demonstrates that many middle-income countries have large and diverse state-owned entities in their development policy toolbox and have begun to experiment with these tools in order to change the pace and characteristics of structural transformation. Considering these trends, there is a need to reconsider or ‘normalize’ the debate on the positive role that state-owned entities can play in stimulating structural transformation and on the institutional and policy design that can foster that role.

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  • Kim, Kyunghoon & Sumner, Andy, 2021. "Bringing state-owned entities back into the industrial policy debate: The case of Indonesia," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 496-509.
    • Handle: RePEc:eee:streco:v:59:y:2021:i:c:p:496-509
    DOI: 10.1016/j.strueco.2021.10.002
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    1. Ming Chen & Jiao Wu, 2023. "State ownership may not be bad: Based on bibliometric research (2002–2021)," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1285-1304, March.

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