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Gains from Indonesian Export Growth: Do Linkages Matter?

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  • Prema-chandra Athukorala
  • Bambang Santosa

Abstract

Intersectoral input linkages are often used as a criterion for assessing the developmental impact of export-led industrialisation, and for determining export development policy priorities. The authors argue, in the light of recent Indonesian experience, that this closed-economy planning tool is fundamentally flawed as a criterion for evaluating policy and performance in an export-oriented growth strategy For the period 1985 to 1995 we examine the relationship of sectoral input linkages both to the employment impact of Indonesian manufactured exports and to the contribution of these exports to net foreign exchange earnings. We find that linkages have no significant correlation—and indeed sometimes a negative one—with employment and net export growth

Suggested Citation

  • Prema-chandra Athukorala & Bambang Santosa, 1997. "Gains from Indonesian Export Growth: Do Linkages Matter?," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 33(2), pages 73-95.
  • Handle: RePEc:taf:bindes:v:33:y:1997:i:2:p:73-95
    DOI: 10.1080/00074919712331337135
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    References listed on IDEAS

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    1. James Riedel, 1976. "A Balanced-Growth Version of the Linkage Hypothesis: A Comment," The Quarterly Journal of Economics, Oxford University Press, vol. 90(2), pages 319-322.
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    Cited by:

    1. Prema-chandra Athukorala, 2012. "Sri Lanka’s Trade Policy: Reverting to Dirigisme?," The World Economy, Wiley Blackwell, vol. 35(12), pages 1662-1686, December.
    2. Haryo Aswicahyono & Chris Manning, 2011. "Exports and Job Creation in Indonesia Before and After the Asian Financial Crisis," Departmental Working Papers 2011-11, The Australian National University, Arndt-Corden Department of Economics.
    3. Prema-chandra Athukorala & Archanun Kohpaiboon, 2013. "Global Production Sharing, Trade Patterns and Industrialization in Southeast Asia," Departmental Working Papers 2013-18, The Australian National University, Arndt-Corden Department of Economics.
    4. Kelegama, Saman & Foley, Fritz, 1999. "Impediments to Promoting Backward Linkages from the Garment Industry in Sri Lanka," World Development, Elsevier, vol. 27(8), pages 1445-1460, August.
    5. Christer Ljungwall, 2004. "Guangdong: A catalyst for economic growth and exports in hunan province," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 2(3), pages 249-265.

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