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'Perspiration' vs 'Inspiration' in Asian Industrialisation: Indonesia Before the Crisis

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  • H. Aswicahyono
  • H. Hill

Abstract

This article examines trends in and determinants of total factor productivity (TFP) in 28 manufacturing industries in Indonesia over the period 1975-93. The reforms of the mid-1980s appeared to have resulted in a significant acceleration of TFP growth. Among the inter-industry determinants of TFP growth, trade policy and orientation, domestic competitive pressures and ownership factors are singled out for scrutiny. The trade regime and one measure of domestic competition emerge as consistently important explanatory factors.

Suggested Citation

  • H. Aswicahyono & H. Hill, 2002. "'Perspiration' vs 'Inspiration' in Asian Industrialisation: Indonesia Before the Crisis," Journal of Development Studies, Taylor & Francis Journals, vol. 38(3), pages 138-163.
    • Handle: RePEc:taf:jdevst:v:38:y:2002:i:3:p:138-163
    DOI: 10.1080/00220380412331322381
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    Citations

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    Cited by:

    1. Margono, Heru & Sharma, Subhash C., 2006. "Efficiency and productivity analyses of Indonesian manufacturing industries," Journal of Asian Economics, Elsevier, vol. 17(6), pages 979-995, December.
    2. Basri, Muhammad Chatib, 2013. "A Tale of Two Crises: Indonesia’s Political Economy," Working Papers 57, JICA Research Institute.
    3. Okamoto, Yumiko & Sjöholm, Fredrik, 1999. "FDI and the Dynamics of Productivity: Microeconomic Evidence," SSE/EFI Working Paper Series in Economics and Finance 348, Stockholm School of Economics.
    4. Pierre van der Eng, 2008. "The sources of long-term economic growth in Indonesia, 1880-2007," ANU Working Papers in Economics and Econometrics 2008-499, Australian National University, College of Business and Economics, School of Economics.
    5. van der Eng, Pierre, 2010. "The sources of long-term economic growth in Indonesia, 1880-2008," Explorations in Economic History, Elsevier, vol. 47(3), pages 294-309, July.
    6. Sjöholm, Fredrik, 2016. "Foreign Direct Investment and Value Added in Indonesia," Working Paper Series 1141, Research Institute of Industrial Economics.
    7. Mahadevan, Renuka, 2007. "Perspiration versus inspiration: Lessons from a rapidly developing economy," Journal of Asian Economics, Elsevier, vol. 18(2), pages 331-347, April.
    8. Heru Iswahyudi, 2016. "Back to oil: Indonesia economic growth after Asian financial crisis," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 8(1), pages 25-44, April.
    9. Robert E. Lipsey & Fredrik Sjöholm & Jing Sun, 2010. "Foreign Ownership and Employment Growth in Indonesian Manufacturing," NBER Working Papers 15936, National Bureau of Economic Research, Inc.
    10. Peter Warr, 2006. "Productivity Growth in Thailand and Indonesia: How Agriculture Contributes to Economic Growth," Working Papers in Economics and Development Studies (WoPEDS) 200606, Department of Economics, Padjadjaran University, revised Feb 2006.
    11. Michiel Van Dijk & Adam Szirmai, 2006. "Technical efficiency and embodied technical change in the Indonesian pulp and paper industry," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(2), pages 163-178.
    12. Lipsey, Robert E. & Sjöholm, Fredrik, 2010. "FDI and Growth in East Asia: Lessons for Indonesia," Working Paper Series 852, Research Institute of Industrial Economics.
    13. Yumiko Okamoto & Fredrik Sjoholm, 2005. "FDI and the Dynamics of Productivity in Indonesian Manufacturing," Journal of Development Studies, Taylor & Francis Journals, vol. 41(1), pages 160-182.

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