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'De-industrialisation' and colonial rule: The cotton textile industry in Indonesia, 1820-1941

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  • Pierre van der Eng

Abstract

Did colonial rule in Indonesia have a de-industrialising impact? Using the case of the cotton textile industry, this paper finds little evidence. Value added in the industry increased in Java during 1820-71, increased more than three-fold during 1874-1914 and doubled during 1934-41. Most activity involved finishing of imported cotton cloth. Spinning and weaving increased marginally, as high labour intensity of small-scale production, marginal local raw cotton production, and competitive international markets for yarn and cloth precluded domestic production. Unfavourable real exchange rates discouraged investment in modern spinning and weaving ventures. From 1934, production increased rapidly due to trade protection and technological change in small-scale weaving.

Suggested Citation

  • Pierre van der Eng, 2007. "'De-industrialisation' and colonial rule: The cotton textile industry in Indonesia, 1820-1941," Departmental Working Papers 2007-04, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2007-04
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    File URL: https://crawford.anu.edu.au/acde/publications/publish/papers/wp2007/wp-econ-2007-04.pdf
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    Cited by:

    1. Elise van Nederveen Meerkerk, 2017. "Challenging the de‐industrialization thesis: gender and indigenous textile production in Java under Dutch colonial rule, c. 1830–1920," Economic History Review, Economic History Society, vol. 70(4), pages 1219-1243, November.
    2. Jean-Pascal Bassino & Jeffrey G. Williamson, 2015. "From Commodity Booms to Economic Miracles: Why Southeast Asian Industry Lagged Behind," UP School of Economics Discussion Papers 201507, University of the Philippines School of Economics.
    3. Williamson, Jeffrey G., 2013. "The Commodity Export, Growth, and Distribution Connection in Southeast Asia 1500-1940," CEPR Discussion Papers 9364, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    Cotton textiles; manufacturing; Indonesia; trade policy; technological change;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • N65 - Economic History - - Manufacturing and Construction - - - Asia including Middle East
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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