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The sources of long-term economic growth in Indonesia, 1880-2008

  • van der Eng, Pierre

This paper presents new time series estimates of GDP, capital stock and education-adjusted employment, and uses a growth accounting approach to analyze GDP growth during 1880-2008. The growth of capital stock, employment and educational attainment explained almost all of GDP growth. During key growth periods 1900-29 and 1975-97, Total Factor Productivity (TFP) growth was on balance negative. TFP growth was substantial during some sub-periods, particularly 1933-41, 1951-61, 1967-74 and 2000-08. Each followed a major economic downturn that slowed capital stock growth and required a more efficient use of productive resources, supported by changes in economic policy that enhanced productivity and efficiency.

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File URL: http://www.sciencedirect.com/science/article/B6WFJ-4XNF45V-1/2/18b1711baa4ac9ecbc713dcaf498b852
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Article provided by Elsevier in its journal Explorations in Economic History.

Volume (Year): 47 (2010)
Issue (Month): 3 (July)
Pages: 294-309

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Handle: RePEc:eee:exehis:v:47:y:2010:i:3:p:294-309
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622830

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  1. Susan M. Collins & Barry P. Bosworth, 1996. "Economic Growth in East Asia: Accumulation versus Assimilation," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 27(2), pages 135-204.
  2. P. Nandalal Weerasinghe & George Fane, 2005. "Accounting For Discrepancies Among Estimates Of Tfp Growth In East Asia," Economic Papers, The Economic Society of Australia, vol. 24(3), pages 280-293, 09.
  3. Pierre van der Eng, 1999. "Some Obscurities in Indonesia's New National Accounts," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 35(2), pages 91-106.
  4. H. Aswicahyono & H. Hill, 2002. "'Perspiration' vs 'Inspiration' in Asian Industrialisation: Indonesia Before the Crisis," Journal of Development Studies, Taylor & Francis Journals, vol. 38(3), pages 138-163.
  5. Young, Alwyn, 1994. "Accumulation, exports, and growth in the high performing Asian economies : A comment," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 40(1), pages 237-250, June.
  6. Jesus Felipe, 1999. "Total factor productivity growth in East Asia: A critical survey," Journal of Development Studies, Taylor & Francis Journals, vol. 35(4), pages 1-41.
  7. Virginie Vial, 2006. "New Estimates Of Total Factor Productivity Growth In Indonesian Manufacturing," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(3), pages 357-369.
  8. Leandro Prados de la Escosura & Joan R. Rosés, 2003. "Wages And Labor Income In History: A Survey," Working Papers in Economic History wh031006, Universidad Carlos III, Instituto Figuerola de Historia y Ciencias Sociales.
  9. Scott L. Baier & Gerald P. Dwyer & Robert Tamura, 2006. "How Important are Capital and Total Factor Productivity for Economic Growth?," Economic Inquiry, Western Economic Association International, vol. 44(1), pages 23-49, January.
  10. Drysdale, Peter & Huang, Yiping, 1997. "Technological Catch-up and Economic Growth in East Asia and the Pacific," The Economic Record, The Economic Society of Australia, vol. 73(222), pages 201-11, September.
  11. Maddison, Angus, 1987. "Growth and Slowdown in Advanced Capitalist Economies: Techniques of Quantitative Assessment," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 649-98, June.
  12. Pierre van der Eng, 2009. "Capital formation and capital stock in Indonesia, 1950-2008," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 45(3), pages 345-371.
  13. Marcel Timmer, 1999. "Indonesia's Ascent on the Technology Ladder: Capital Stock and Total Factor Productivity in Indonesian Manufacturing, 1975-95," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 35(1), pages 75-97.
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