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Post-crisis export performance: The Indonesian experience in regional perspective

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  • Prema-Chandra Athukorala

Abstract

This paper examines post-crisis export performance in Indonesia against the backdrop of pre-crisis experience and the comparative export performance of other Southeast Asian countries. It surveys trends and patterns of export performance, focusing on comparative experience in major commodity categories and changing revealed comparative advantage. It also examines the implications for Indonesia's export performance of China's emergence as a major competitor in world trade, considers market prospects for textile and garment exports following the demise of the Multi-fibre Arrangement, and explores the factors contributing to the post-crisis export slowdown. The findings support the view that Indonesia's poor export performance in the post-crisis era is largely supply driven. They strengthen the case for reversal of recent backsliding in macroeconomic policy reform, and for speedy implementation of the unfinished reform agenda. Prudent macroeconomic management, while necessary, is not sufficient to achieve rapid and sustained export growth in an era of rapid economic globalisation.

Suggested Citation

  • Prema-Chandra Athukorala, 2006. "Post-crisis export performance: The Indonesian experience in regional perspective," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(2), pages 177-211.
  • Handle: RePEc:taf:bindes:v:42:y:2006:i:2:p:177-211
    DOI: 10.1080/00074910600873658
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    References listed on IDEAS

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    1. Haryo Aswicahyono & Hal Hill, 2014. "Survey of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(3), pages 319-346, December.
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    10. Athukorala, Prema-chandra & Sen, Kunal, 1998. "Processed food exports from developing countries: patterns and determinants," Food Policy, Elsevier, vol. 23(1), pages 41-54, February.
    11. Jaffee, S. & Gordon, P., 1993. "Exporting High-Value Food Commodities: Success Stories from Developing Countries," World Bank - Discussion Papers 198, World Bank.
    12. David Roland Holst & John Weiss, 2004. "ASEAN and China: Export Rivals or Partners in Regional Growth?," The World Economy, Wiley Blackwell, vol. 27(8), pages 1255-1274, August.
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    14. Budy P. Resosudarmo & Arief Anshory Yusuf, 2006. "Is the Log Export Ban Effective? Revisiting the Issue through the Case of Indonesia," Economics and Environment Network Working Papers 0602, Australian National University, Economics and Environment Network.
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    Cited by:

    1. Athukorala, Prema-chandra & Wai-Heng, Loke, 2007. "Distortions to Agricultural Incentives in Malaysia," Agricultural Distortions Working Paper 48476, World Bank.
    2. repec:wsi:serxxx:v:53:y:2008:i:03:n:s0217590808003105 is not listed on IDEAS
    3. Dionisius Narjoko & Hal Hill, 2007. "Winners and Losers during a Deep Economic Crisis: Firm-level Evidence from Indonesian Manufacturing ," Asian Economic Journal, East Asian Economic Association, vol. 21(4), pages 343-368, December.
    4. M. Chatib BASRI & Hal HILL, 2011. "Indonesian Growth Dynamics," Asian Economic Policy Review, Japan Center for Economic Research, vol. 6(1), pages 90-107, June.
    5. Kelly Bird & Hal Hill & Sandy Cuthbertson, 2008. "Making Trade Policy in a New Democracy after a Deep Crisis: Indonesia," The World Economy, Wiley Blackwell, vol. 31(7), pages 947-968, July.
    6. Mia Mikic & Mochamad Pasha (ed.), 2011. "Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number tipub2597.
    7. Prema-Chandra Athukorala, 2008. "China's integration into global production networks and its implications for export-led growth strategy in other countries in the region," Departmental Working Papers 2008-04, The Australian National University, Arndt-Corden Department of Economics.
    8. Aswicahyono, Haryo & Bird, Kelly & Hill, Hal, 2009. "Making Economic Policy in Weak, Democratic, Post-crisis States: An Indonesian Case Study," World Development, Elsevier, vol. 37(2), pages 354-370, February.
    9. Hal Hill, 2012. "The Best of Times and the Worst of Times: Indonesia and Economic Crises," Departmental Working Papers 2012-03, The Australian National University, Arndt-Corden Department of Economics.
    10. Rudy Rahmaddi & Masaru Ichihashi, 2011. "How Do Foreign and Domestic Demand Affect Exports Performance? An Econometric Investigation of Indonesia's Exports," IDEC DP2 Series 1-4, Hiroshima University, Graduate School for International Development and Cooperation (IDEC), revised Jan 2012.
    11. Prema-chandra Athukorala, 2008. "Trade and Investment Patterns in Asia : Regionalisation or Globalisation?," EABER Working Papers 21794, East Asian Bureau of Economic Research.
    12. Prema-Chandra Athukorala, 2008. "Singapore And Asean In The New Regional Division Of Labor," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 53(03), pages 479-508.
    13. 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.
    14. Haryo Aswicahyono & Hal Hill & Dionisius Narjoko, 2010. "Industrialisation after a Deep Economic Crisis: Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 1084-1108.
    15. M. Chatib Basri & Hal Hill, 2008. "Indonesia - Trade Policy Review 2007," The World Economy, Wiley Blackwell, vol. 31(11), pages 1393-1408, November.
    16. Anne Booth, 2011. "China’s Economic Relations with Indonesia: Threats and Opportunities," Journal of Current Southeast Asian Affairs, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 30(2), pages 141-160.
    17. Deshal de Mel & Suwendrani Jayaratne, 2012. "Vertical Integration of Industries in South Asia," Chapters,in: Regional Integration and Economic Development in South Asia, chapter 2 Edward Elgar Publishing.

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