Structural Transformation in West Kalimantan Towards ASEAN Economic Community 2015

This paper explores the patterns of economic transformation in West Kalimantan during the last 40 years, calculates productivity, and examines the impact of agriculture sector decline on non-agricultural sector performance. It finds that economic transformation has taken place in West Kalimantan, and that the productivity of agricultural sector remains low. It also finds that the decline in agriculture sector increases the output of trade and manufacture sectors. The emergence of premature shift in the transformation process can be identified by the analysis. The results suggest initiating an outward-looking policy through an active participation within the sub-regional cooperation in ASEAN.