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Industrialisation after a Deep Economic Crisis: Indonesia

  • Haryo Aswicahyono
  • Hal Hill
  • Dionisius Narjoko

Indonesia experienced a deep economic contraction as a result of the 1997-1998 Asian crisis. This paper develops an analytical framework that facilitates an examination of trends and patterns in the country's industrial sector in the wake of the crisis, and explains why it appears to be on a lower growth trajectory. We particularly focus on why industrialisation has become less employment elastic; why industrial exports have performed indifferently; and why the process of small firms 'graduating' to larger units has slowed, and most of the output growth is now coming from existing firms rather than new entrants.

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Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 46 (2010)
Issue (Month): 6 ()
Pages: 1084-1108

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Handle: RePEc:taf:jdevst:v:46:y:2010:i:6:p:1084-1108
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  1. Dionisius Narjoko & Hal Hill, 2006. "Winners and Losers during a Deep Economic Crisis: Firm-level Evidence from Indonesian Manufacturing," Departmental Working Papers 2006-13, The Australian National University, Arndt-Corden Department of Economics.
  2. Chris Manning & Kurnya Roesad, 2006. "Survey of recent developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(2), pages 143-170.
  3. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
  4. Haryo Aswicahyono, 2000. "How Not to Industrialise? Indonesia's Automotive Industry," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 36(1), pages 209-241.
  5. Kelly Bird & Sandy Cuthbertson & Hal Hill, 2007. "Making Trade Policy in a New Democracy after a Deep Crisis: Indonesia," Departmental Working Papers 2007-01, The Australian National University, Arndt-Corden Department of Economics.
  6. Robert E. Lipsey, 2001. "Foreign Direct Investors in Three Financial Crises," NBER Working Papers 8084, National Bureau of Economic Research, Inc.
  7. Reuven Glick & Ramon Moreno & Mark Spiegel, 2001. "Financial crises in emerging markets," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue mar.23.
  8. Sadayuki Takii & Eric Ramstetter, 2005. "Multinational presence and labour productivity differentials in Indonesian manufacturing, 1975-2001," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 41(2), pages 221-242.
  9. 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.
  10. L. Peter Rosner, 2000. "Indonesia's Non-Oil Export Performance During the Economic Crisis: Distinguishing Price Trends from Quantity Trends," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 36(2), pages 61-95.
  11. Steven J. Davis & John C. Haltiwanger & Scott Schuh, 1998. "Job Creation and Destruction," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262540932, June.
  12. Jay Rosengard & Richard Patten & Don Johnston & Widjojo Koesoemo, 2007. "The Promise And The Peril Of Microfinance Institutions In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 43(1), pages 87-112.
  13. Fukunari KIMURA, 2006. "International Production and Distribution Networks in East Asia: Eighteen Facts, Mechanics, and Policy Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 1(2), pages 326-344.
  14. Chris Manning, 2000. "Labour Market Adjustment to Indonesia's Economic Crisis: Context, Trends and Implications," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 36(1), pages 105-136.
  15. Albert Berry & Edgard Rodriguez & Henry Sandee, 2001. "Small And Medium Enterprise Dynamics In Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 37(3), pages 363-384.
  16. Hadi Soesastro & M. Chatib Basri, 2005. "The Political Economy of Trade Policy in Indonesia," Trade Working Papers 22033, East Asian Bureau of Economic Research.
  17. Wei Ding & Domac, Ilker & Ferri, Giovanni, 1998. "Is there a credit crunch in East Asia?," Policy Research Working Paper Series 1959, The World Bank.
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