IDEAS home Printed from https://ideas.repec.org/a/taf/ctwqxx/v43y2022i10p2375-2395.html
   My bibliography  Save this article

Leading sector and dual economy: how Indonesia and Malaysia mobilised Chinese capital in mineral processing

Author

Listed:
  • Alvin Camba
  • Guanie Lim
  • Kevin Gallagher

Abstract

How do states pursue industrial policies in the context of China’s rise? Examining Indonesia and Malaysia’s mineral processing sectors, we argue that these countries illustrate two different pathways that states take to bolster their industrial policies. Indonesia has followed the leading sector strategy to increase domestic nickel processing capacity and decrease reliance on resource exports. Chinese firms and the Indonesian government built the Indonesia Morowali Industrial Park to house nickel smelters, fostering a new leading sector. Chinese capital in smelting follows what Albert Hirschman has called ‘intermediate investments’, maximising forward and backward linkages across the Indonesian economy. In contrast, Malaysia has followed the dual economy strategy, where semi-finished goods are imported and assembled into finished ones to be exported abroad. Chinese firms and the Malaysian government established the Malaysia–China Kuantan Industrial Park to import, process and export steel products. However, due to the dual economy strategy, the industrial park impairs the activities of domestic steelmaking companies and inhibits the potential build-up of smelting capacity. In sum, through an examination of an industrial park in each country, our paper connects the literatures on industrial policy and Chinese capital.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:ctwqxx:v:43:y:2022:i:10:p:2375-2395
    DOI: 10.1080/01436597.2022.2093180
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/01436597.2022.2093180
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/01436597.2022.2093180?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nicholas Jepson & Oyuna Baldakova, 2024. "Chinese State Capital as a Partner for Resource-Based Structural Transformation? The Belt and Road Initiative and Downstream Linkages in Bolivia and Kazakhstan [¿El capital estatal chino como socio," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(3), pages 718-745, June.
    2. Tritto, Angela & Camba, A., 2022. "State-facilitated Industrial Parks in the Belt and Road Initiative: Towards a framework for understanding the localization of the Chinese development model," World Development Perspectives, Elsevier, vol. 28(C).
    3. Wei, Feiqiong & Han, Jiatong & Xu, Wei, 2024. "Exploring the nexus between structural capital, carbon neutrality and sustainable competitiveness: Evidence from natural resource exploitation in the post-COVID-19 era," Resources Policy, Elsevier, vol. 88(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ctwqxx:v:43:y:2022:i:10:p:2375-2395. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/ctwq .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.