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Structural transformation and inclusive growth: Kuznets' 'developer's dilemma' in Indonesia

Author

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  • Kyunghoon Kim
  • Arriya Mungsunti
  • Andy Sumner
  • Arief Anshory Yusuf

Abstract

We focus on special characteristics of the manufacturing sector, in terms of employment generation and productivity growth, that enable the rapid, resilient economic catch-up of developing countries. We consider the 'developer's dilemma' and the relationship between manufacturing value added or employment shares and trends in income inequality. In Indonesia, structural transformation was growth-enhancing and economic growth inclusive during the decades before the 1997-98 Asian financial crisis.

Suggested Citation

  • Kyunghoon Kim & Arriya Mungsunti & Andy Sumner & Arief Anshory Yusuf, 2020. "Structural transformation and inclusive growth: Kuznets' 'developer's dilemma' in Indonesia," WIDER Working Paper Series wp-2020-31, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-31
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    References listed on IDEAS

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    Cited by:

    1. Arief Anshory Yusuf & Putri Riswani Halim, 2021. "Inequality and structural transformation in the changing nature of work: The case of Indonesia," WIDER Working Paper Series wp-2021-81, World Institute for Development Economic Research (UNU-WIDER).

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    Keywords

    Structural transformation; Inclusive growth; Indonesia; Industrial policy; Social assistance;
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