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HOW to Facilitate or Stifle Economic Development: The Role of Agriculture in Indonesia and the Philippines

Author

Listed:
  • James, William
  • Roumasset, James

Abstract

Strikingly different patterns of agricultural growth and widely divergent results in terlnsof rural income. poverty. and employment have cmcrged in Southeast Asia. In the Philippiies, with someregional variations, a patterns of declining red farm wages,increasing landlessness in worsening poverty and diminishing employmctlt relative to demand for jobs has emerged despite some brief periods of improvcment since 1960. Sincc 1980, the employment and poverty situation has deteriorated sharply,particularly in areas concentrating on single traditional export crops (lkc sugar or coconuts) but also in amore general context. Indonesia (particularly in Java, which contains over 60 pcrcent of the population) succeeded in reversing a seemingly inevitable worsening of poverty and inequality in the rural economy with strong evidence indicating that rural real wages and income of small farmers rose substantially between the mid-1970sand late 1980s. Why such divergent patterns of rural development exist and the lessons that can be extracted from thc varied cxperiences of 1ndoncsia and the Philippines are subjects of this papcr.

Suggested Citation

  • James, William & Roumasset, James, 1992. "HOW to Facilitate or Stifle Economic Development: The Role of Agriculture in Indonesia and the Philippines," MPRA Paper 14848, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:14848
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    File URL: https://mpra.ub.uni-muenchen.de/14848/1/MPRA_paper_14848.pdf
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    References listed on IDEAS

    as
    1. Balisacan, Arsenio M, 1993. "Agricultural Growth, Landlessness, Off-farm Employment, and Rural Poverty in the Philippines," Economic Development and Cultural Change, University of Chicago Press, vol. 41(3), pages 533-562, April.
    2. James, William & Roumasset, James, 1984. "Migration and the evolution of tenure contracts in newly settled regions," Journal of Development Economics, Elsevier, vol. 14(1), pages 147-162.
    3. David, Cristina C. & Otsuka, Keijiro, 1990. "The Modern Seed-Fertiliser Technology And Adoption Of Labour-Saving Technologies: The Philippine Case," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 34(02), August.
    4. Borland, Jeff & Yang, Xiaokai, 1992. "Specialization and a New Approach to Economic Organization and Growth," American Economic Review, American Economic Association, vol. 82(2), pages 386-391, May.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Balisacan, Arsenio M., 1994. "Agricultural Growth and Rural Incomes: Rural Performance Indicators and Consumption Patterns," Discussion Papers DP 1994-12, Philippine Institute for Development Studies.

    More about this item

    Keywords

    agriculture; economic develoment; Indonesia; the Philippines;

    JEL classification:

    • N01 - Economic History - - General - - - Development of the Discipline: Historiographical; Sources and Methods
    • N55 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - Asia including Middle East
    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing

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