The article presents results of a study of real output and labour productivity in Indonesian manufacturing. It focuses on a binary comparison of real output and labour productivity in Indonesia and the USA in establishments employing 20 or more persons for the year 1987. (DÜI-Sen)

This paper examines the theoretical and empirical evidence for the hypothesis that manufacturing is the main engine of growth in developing countries. The paper opens with an overview of the main arguments supporting the engine of growth hypothesis and then examines each of these arguments using...