Accounting for Services : The Economic Development of the Indonesian Service Sector, ca. 1900-2000

The most intriguing question about Indonesia’s economic development during the twentieth century is why the country’s growth performance has been so erratic and displayed such a high degree of discontinuity. This is connected with the fundamental question about the nature of long-run economic development in Indonesia. So far the economic history of Indonesia has been less systematic than what the available source material would permit. Indonesia is exceptionally well endowed with rich statistical sources, which carry the potential of supporting a rigorous and systematic quantitative approach to vital questions concerning the economic growth performance in the long run. This book takes such an approach and presents new estimates for the long-run growth of the Indonesian service sector, and analyses the role of the various service sectors in economic development. Linking empirical and theoretical analysis in a creative fashion, it provides a rich and original contribution to our understanding of the economic history of Indonesia. The study shows that the service sector has played a crucial role in Indonesia’s economic development. Or in other words, to fully understand Indonesia’s economic development path services need to be accounted for.