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

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  • 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: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2007/wp-econ-2007-04.pdf
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Bibliographic Info

Paper provided by The Australian National University, Arndt-Corden Department of Economics in its series Departmental Working Papers with number 2007-04.

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

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Keywords: Cotton textiles; manufacturing; Indonesia; trade policy; technological change;

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