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'De-industrialisation' and colonial rule: The cotton textile industry in Indonesia, 1820-1941

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Author Info
Pierre van der Eng ()

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Abstract

Did colonial rule in Indonesia have a de-industrialising impact? Using the case of the cotton textile industry, this paper finds little evidence. Value added in the industry increased in Java during 1820-71, increased more than three-fold during 1874-1914 and doubled during 1934-41. Most activity involved finishing of imported cotton cloth. Spinning and weaving increased marginally, as high labour intensity of small-scale production, marginal local raw cotton production, and competitive international markets for yarn and cloth precluded domestic production. Unfavourable real exchange rates discouraged investment in modern spinning and weaving ventures. From 1934, production increased rapidly due to trade protection and technological change in small-scale weaving.

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File URL: http://rspas.anu.edu.au/economics/publish/papers/wp2007/wp-econ-2007-04.pdf
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Publisher Info
Paper provided by Australian National University, Economics RSPAS in its series Departmental Working Papers with number 2007-04.

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Length: 31 pages
Date of creation: 2007
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Handle: RePEc:pas:papers:2007-04

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Related research
Keywords: Cotton textiles manufacturing Indonesia trade policy technological change

Find related papers by JEL classification:
F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables
N65 - Economic History - - Manufacturing and Construction - - - Asia including Middle East
O14 - Economic Development, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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This page was last updated on 2008-10-9.


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