Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/109506
Authors: 
Tijaja, Julia
Faisal, Mohammad
Year of Publication: 
2014
Series/Report no.: 
ADB Economics Working Paper Series 411
Abstract: 
The gains of a country from participating in global value chains (GVCs) will depend on the productive activities taking place in its jurisdiction and their linkages to the domestic economy. Lead firms' decision on where to locate and how to coordinate production activities is influenced, among others, by industrial policies. On the one side, policy space provides governments with some leverage in guiding economic activities and influencing development outcomes. On the other hand, policy risks have the potential to adversely affect the outcomes. This study focuses on industrial policies in Indonesia, using the mineral sector as a mini case study. The case study assesses the Indonesian Government's recent effort to boost domestic value addition in the sector. This paper argues that the effectiveness of government policies in maximizing the gains from GVC participation depends not only on policy design, but also on policy consistency and coherence, effective implementation, and coordination.
Subjects: 
industrial policy
Indonesia
global value chain
upgrading
JEL: 
F63
F68
L52
L70
O25
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by/3.0/igo
Document Type: 
Working Paper

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