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Resource-based industrial policy in an era of global production networks: Strategic coupling in the Indonesian cocoa sector
Neilson J.a, Dwiartama A.b, Fold N.c, Permadi D.b
a University of Sydney, Australia
b Bandung Institute of Technology, Indonesia
c University of Copenhagen, Denmark
[vc_row][vc_column][vc_row_inner][vc_column_inner][vc_separator css=”.vc_custom_1624529070653{padding-top: 30px !important;padding-bottom: 30px !important;}”][/vc_column_inner][/vc_row_inner][vc_row_inner layout=”boxed”][vc_column_inner width=”3/4″ css=”.vc_custom_1624695412187{border-right-width: 1px !important;border-right-color: #dddddd !important;border-right-style: solid !important;border-radius: 1px !important;}”][vc_empty_space][megatron_heading title=”Abstract” size=”size-sm” text_align=”text-left”][vc_column_text]© 2020 Elsevier LtdProcesses of industrialisation have long been associated with labour productivity improvements, rising incomes, and ultimately economic and social development. The preferred policy strategy to achieve these development objectives, however, remain intensely debated. A specific policy strategy of resource-based industrialisation (RBI), involving pre-export value addition to raw materials, is frequently pursued by resource-rich countries in the global south. We apply the analytical framework of Global Production Network (GPN) theory, and its central notion of strategic coupling, to the case of cocoa processing in Indonesia. Our findings demonstrate that the apparent success of an RBI policy in encouraging growth of a domestic cocoa processing sector, primarily through the use of export restrictions, is highly dependent on industry-specific GPN dynamics. Through an assessment of downstreaming policies in Indonesia, this paper provides an explanation for the success and limitations of such industrial policies in the contemporary global economy. Industry outcomes are strongly influenced by Indonesia’s position within a set of globally-connected networks and the alignment of national policy with the particular strategies of lead firms within these networks in a processes of strategic coupling. We further argue that the inherent importance of upstream supply within resource-based industrialisation demands further attention when applying concepts of strategic coupling to this particular policy framework.[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Author keywords” size=”size-sm” text_align=”text-left”][vc_column_text][/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Indexed keywords” size=”size-sm” text_align=”text-left”][vc_column_text]Chocolate,Cocoa,Global Production Networks (GPNs),Indonesia,Industrial policy,Resource-based industrialisation (RBI),Strategic coupling[/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”Funding details” size=”size-sm” text_align=”text-left”][vc_column_text][{‘$’: “We’d like to acknowledge the funding support of the Australian Centre for International Agricultural Research (ACIAR) for field research in Indonesia. We received helpful feedback on an earlier version of this paper from participants at a seminar held at the Indonesian Ministry of Trade in Jakarta in August 2018 that was financially supported by the Canada-Indonesia Trade and Private Sector Assistance Project (TPSA). The International Academy program of the Department of Geosciences and Natural Resource Management at the University of Copenhagen provided financial support for a short-term collaboration amongst co-authors that contributed to the preparation of this paper in June of 2019. We acknowledge the input provided on the paper provided by Neil Coe and the two anonymous reviewers, all of which helped improve the paper.”}, {‘$’: ‘We’d like to acknowledge the funding support of the Australian Centre for International Agricultural Research (ACIAR) for field research in Indonesia. We received helpful feedback on an earlier version of this paper from participants at a seminar held at the Indonesian Ministry of Trade in Jakarta in August 2018 that was financially supported by the Canada-Indonesia Trade and Private Sector Assistance Project (TPSA). The International Academy program of the Department of Geosciences and Natural Resource Management at the University of Copenhagen provided financial support for a short-term collaboration amongst co-authors that contributed to the preparation of this paper in June of 2019. We acknowledge the input provided on the paper provided by Neil Coe and the two anonymous reviewers, all of which helped improve the paper.’}][/vc_column_text][vc_empty_space][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][vc_empty_space][megatron_heading title=”DOI” size=”size-sm” text_align=”text-left”][vc_column_text]https://doi.org/10.1016/j.worlddev.2020.105045[/vc_column_text][/vc_column_inner][vc_column_inner width=”1/4″][vc_column_text]Widget Plumx[/vc_column_text][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_separator css=”.vc_custom_1624528584150{padding-top: 25px !important;padding-bottom: 25px !important;}”][/vc_column][/vc_row]