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

Publication | October 2011

This paper finds that fewer jobs were created through exports in manufacturing industries in 2005 than before the Asian financial crisis. However, there was an increase in jobs in the service sector.

Employment generation has been a challenge in Indonesia since the Asian financial crisis, especially in labor-intensive manufacturing. This paper examines the impact of exports on jobs based on an analysis of input-output tables over the period 1995–2005. This document finds that fewer jobs were created through exports in manufacturing industries in 2005 than before the crisis. However, there was an increase in service sector jobs, partly because of indirect connections with the main export industries, which could be enhanced through greater domestic and international competition in services.

Contents 

  • Abstract
  • Introduction
  • Background and Some Key Issues
  • The Context: Economic Performance, Policies, and the Labor Market
  • Exports and Employment
  • Concluding Remarks and Policy Implications
  • References

Additional Details

Authors
Type
Series
Subjects
  • Economics
  • Finance sector development
  • Industry and trade
  • Social development and protection
  • Social protection - labor and employment
Countries
  • Indonesia
SKU
  • WPS114216
ISSN
  • 1655-5252 (Print)

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