'De-industrialisation' and colonial rule: The cotton textile industry in Indonesia, 1820-1941
AbstractDid 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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Bibliographic InfoPaper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2007-04.
Length: 31 pages
Date of creation: 2007
Date of revision:
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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; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-06-11 (All new papers)
- NEP-DEV-2007-06-11 (Development)
- NEP-HIS-2007-06-11 (Business, Economic & Financial History)
- NEP-SEA-2007-06-11 (South East Asia)
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