Arbeitspapier

Exports and Employment in Indonesia: The Decline in Labor-Intensive Manufacturing and the Rise of Services

Employment generation has been a challenge in Indonesia since the Asian financial crisis, especially in labor-intensive manufacturing. Drawing on work by James and Fujita (2000), this paper examines the impact of exports on jobs, based on an analysis of input–output tables over the period 1995–2005. It finds that fewer jobs were created through exports in manufacturing industries in 2005 than before the crisis, because of slower growth in manufacturing exports and a shift away from light industry. The slowdown is potentially costly due to the endemic elastic supply of unskilled labor. However, there was an increase in jobs in the services sector, partly because of indirect connections with the main export industries. This could be enhanced through greater domestic and international competition in services. The main constraints to job creation through exports appear on the supply side, especially those related to poor infrastructure, an uncertain investment climate, and tight labor regulations.

Sprache
Englisch

Erschienen in
Series: ADB Economics Working Paper Series ; No. 279

Klassifikation
Wirtschaft
Thema
Export
Industrie
Beschäftigungseffekt
Input-Output-Analyse
Indonesien

Ereignis
Geistige Schöpfung
(wer)
Aswicahyono, Haryo
Brooks, Douglas H.
Manning, Chris
Ereignis
Veröffentlichung
(wer)
Asian Development Bank (ADB)
(wo)
Manila
(wann)
2011

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Aswicahyono, Haryo
  • Brooks, Douglas H.
  • Manning, Chris
  • Asian Development Bank (ADB)

Entstanden

  • 2011

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