Title : Small and Medium Enterprises and Low-Information Workers in the Global Value Chain: Evidence from Indonesia

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

Department : Economics

Journal Name : International Journal of Business and Globalization

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 Pattern of Trade as it Re-Directed Focus Towards Asia and Specialized in Intermediate Goods. This paper assessment to which extent liberalization 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 Labor), This Study Links Gains At Firm Size and Jobs. Althouugh nearly 83% of exports are reported through large firms, smelling by providing services and components to exporters. Direct Exports of Smes are concentrated in a few sector; Howver, the indirect content reaches more than 30% of total value exported.

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