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Resilience to shrinking as a catch-up strategy: a comparison of Brazil and Indonesia, 1964–2010

Author

Listed:
  • Axelsson, Tobias

    (Department of Economic History, Lund University)

  • Martins, Igor

    (Department of Economic History, Lund University)

Abstract

Development economics has long focused on growth patterns to explain countries’ ability to catch up and forge ahead. We argue, however, that resilience to economic shrinking matters more. Using the examples of Brazil and Indonesia, we propose that a framework consisting of social capabilities – namely structural transformation, autonomy, and inclusion – can explain why Indonesia is more resilient to economic shrinking than Brazil and why the country is more likely to be successful in its catching-up process.

Suggested Citation

  • Axelsson, Tobias & Martins, Igor, 2022. "Resilience to shrinking as a catch-up strategy: a comparison of Brazil and Indonesia, 1964–2010," Lund Papers in Economic History 233, Lund University, Department of Economic History.
    • Handle: RePEc:hhs:luekhi:0233
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    References listed on IDEAS

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    More about this item

    Keywords

    economic shrinking; income convergence; natural states; social capabilities; Latin America; Asia;
    All these keywords.

    JEL classification:

    • N10 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - General, International, or Comparative
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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