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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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    3. Alvin Camba & Guanie Lim & Kevin Gallagher, 2022. "Leading sector and dual economy: how Indonesia and Malaysia mobilised Chinese capital in mineral processing," Third World Quarterly, Taylor & Francis Journals, vol. 43(10), pages 2375-2395, October.
    4. Karina Fernandez-Stark & Gary Gereffi, 2019. "Global value chain analysis: a primer (second edition)," Chapters, in: Stefano Ponte & Gary Gereffi & Gale Raj-Reichert (ed.), Handbook on Global Value Chains, chapter 2, pages 54-76, Edward Elgar Publishing.
    5. Christian Reynolds & Manju Agrawal & Ivan Lee & Chen Zhan & Jiuyong Li & Phillip Taylor & Tim Mares & Julian Morison & Nicholas Angelakis & Göran Roos, 2018. "A sub-national economic complexity analysis of Australia’s states and territories," Regional Studies, Taylor & Francis Journals, vol. 52(5), pages 715-726, May.
    6. Raphael Kaplinsky & Mike Morris, 2016. "Thinning and Thickening: Productive Sector Policies in The Era of Global Value Chains," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 28(4), pages 625-645, September.
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    Keywords

    Structural transformation; Industrialization; Industrial policy; Indonesia;
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