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Linkage development as industrial policy: The state and structural transformation in resource-rich countries

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  • Imaduddin Abdullah
  • Andy Sumner

Abstract

This paper examines Indonesia's upgrading within the global nickel value chain. Indonesia's transformation from a major nickel ore exporter into an integrated producer of refined nickel products offers important lessons for resource-rich developing countries seeking economic diversification. Drawing on evidence from Indonesia's strategic shift towards midstream and downstream manufacturing, this paper examines how policy choices and state intervention can reshape a country's position in global value chains.

Suggested Citation

  • Imaduddin Abdullah & Andy Sumner, 2025. "Linkage development as industrial policy: The state and structural transformation in resource-rich countries," WIDER Working Paper Series wp-2025-29, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2025-29
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2025-29-linkage-development-industrial-policy.pdf
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    References listed on IDEAS

    as
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    Keywords

    Structural transformation; Industrialization; Industrial policy; Indonesia;
    All these keywords.

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