Title :Small And Medium Enterprises And Low-Income Workers In The Global Value Chain: Evidence From Indonesia

Authors : Miguel Angel Esquivias, Lilik Sugiharti, Rossanto Dwi Handoyo and Muryani Muryani

Departement : Ilmu Ekonomi

Journal Name : International Journal of Business and Globalisation

Kinds of Journal :

Keywords : production networks, jobs in exports, Indonesia, global value chain, GVC, value-added trade

ABSTRACT :

This paper looks at changes experienced by small and medium enterprises (SME) as well as by workers in Indonesia as a result of fragmentation in production networks. Indonesian value-added exports expanded 285% from 1995 to 2011, changing patterns of trade as it re-directed focus towards Asia and specialised in intermediate goods. This paper assesses to which extent liberalisation supported inclusive growth for SMEs, and to lower-skilled workers. Through an inter-country input-output dataset, this study measures the participation of Indonesia in the global value chain and deconstructs gross exports into value-added indicators. By integrating two additional datasets (industrial survey and labour), this study links gains at firm size and jobs. Although nearly 83% of exports are reported through large firms, SME participates by providing services and components to exporters. Direct exports of SMEs are concentrated in a few sectors; however, the indirect content reaches more than 30% of total value exported.

For details :
https://doi.org/10.1504/IJBG.2023.133269