Prospects for skills-based exporth growth in a labour-abundant, resource-rich developing economy

Coxhead, Ian (2009) Prospects for skills-based exporth growth in a labour-abundant, resource-rich developing economy.

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Abstract

In a integrated global economy, specialisation in trade is an increasingly prominient strategy. A labour-abundant, resource-rich economy like Indonesia faces stiff competition in labour-intensive manufactures; meanwhile, rapid growth in demand for resources from China anda India exposes it to the 'curse' of resource wealth. This diminishes prospects for more diversified growht based on renewable resources like human capital. Using an international panel data set we explore the influence of resource wealth, foreign direct investment and human capital ont hte share of skill intensive products in exports. FDI anda human capital increase this share; resource wealth diminishes it. We use the results to compare Indonesia witha Thailand and Malaysia. Indonesia's reliance on skill intensive exports would habe been greater had it achieved higher levels of FDI and skills. Its performance in accumulationg these endowments, and its realtive resource abundance, impede diversification in production and trade. We present polciy option flowing from these findings.

Item Type: Article
Subjects: Prosiding
Divisions: Universitas Komputer Indonesia > Perpustakaan UNIKOM
Depositing User: M.Kom Taryana Suryana
Date Deposited: 16 Nov 2016 07:50
Last Modified: 16 Nov 2016 07:50
URI: https://repository.unikom.ac.id/id/eprint/13471

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