TECHNOLOGY CHOICE AND INCOME-DISTRIBUTION

Whereas the macroeconomic relationship between technology choice and i ncome distribution has so far been studied in the agricultural context , this paper studies the issue from the standpoint of manufacturing in dustry. We suggest that there are historical reasons why labor-intensi ve techniques tend to be more egalitarian in their impact than capital -intensive techniques. These hypotheses are tested by means of a disag gregated SAM for Indonesia and with the assistance of structural path analysis. In general the empirical analysis confirms our theoretical e xpectations. (C) 1997 Elsevier Science Ltd.