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Transforming Indonesia: Structural Change from a Regional Perspective, 1968–2010

In: Agricultural Development in the World Periphery

Author

Listed:
  • Tobias Axelsson

    (Lund University)

  • Andrés Palacio

    (Lund University)

Abstract

Since 1968, Indonesia has been among the few developing countries able to sustain per capita income growth over 5 per cent. However, poverty and surplus labour are still the main features of the economy. Chapter 11 asks to what extent the dual nature of growth has stimulated structural change—or has it just rewarded a particular sector or region? We find that the emblematic State support to agriculture has not tapped the potential growth in labour reallocation. Despite the income diversification within and outside agriculture, the linkages between sectors and regions remain weak. In order to catch up, the integration of the outer regions into the economy must still take place in agriculture, investment in human capital, infrastructure, social policies and local capabilities.

Suggested Citation

  • Tobias Axelsson & Andrés Palacio, 2018. "Transforming Indonesia: Structural Change from a Regional Perspective, 1968–2010," Palgrave Studies in Economic History, in: Vicente Pinilla & Henry Willebald (ed.), Agricultural Development in the World Periphery, chapter 11, pages 281-305, Palgrave Macmillan.
    • Handle: RePEc:pal:palscp:978-3-319-66020-2_11
    DOI: 10.1007/978-3-319-66020-2_11
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    Cited by:

    1. Dr. Andi Sessu, M.Si & Jamali, Hisnol, 2018. "Contribution of Products Domestic Bruto (GDP) Based on the Business Field on Poverty on Indonesia," OSF Preprints 6zxwb, Center for Open Science.
    2. Andriansyah & Asep Nurwanda & Bakhtiar Rifai, 2023. "Structural Change and Regional Economic Growth in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 59(1), pages 91-117, January.
    3. Sessu, Andi & Jamali, Hisnol, 2018. "Contribution of Products Domestic Bruto (GDP) Based on the Business Field on Poverty on Indonesia," OSF Preprints ymwbf, Center for Open Science.

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