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Industrial Development In East Java: A Special Case?

Author

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  • Bambang-Heru Santosa
  • Heath McMichael

Abstract

This paper examines the development of manufacturing in East Java in comparison with other major industrial provinces in Indonesia, with a focus on employment, output and investment in the pre-and-post crisis periods. East Java's 'winner' and 'loser' industries and the geographical distribution of manufacturing in the province are described. The paper attempts to account for manufacturing patterns in East Java in terms of infrastructure constraints, the investment climate, access to finance and the relationship between central, provincial and local governments, following the advent of regional autonomy. The paper finds that East Java manufacturing has been less export oriented and responsive to global demand, thus failing to match the performance of the other major manufacturing centres in Indonesia.

Suggested Citation

  • Bambang-Heru Santosa & Heath McMichael, 2004. "Industrial Development In East Java: A Special Case?," Departmental Working Papers 2004-07, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2004-07
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    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2004/wp-econ-2004-07.pdf
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    Cited by:

    1. World Bank, 2011. "East Java Growth Diagnostic," World Bank Publications - Reports 27420, The World Bank Group.
    2. Heath McMichael, 2009. "The Lapindo mudflow disaster: environmental, infrastructure and economic impact," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 45(1), pages 73-83.
    3. Vincent Ashcroft & David Cavanough, 2008. "Survey Of Recent Developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 44(3), pages 335-363.

    More about this item

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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