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Heru Iswahyudi
Ministry of Finance Republic of Indonesia
Economics, Econometrics & Finance

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Back to oil: Indonesia economic growth after Asian financial crisis Heru Iswahyudi
Economic Journal of Emerging Markets Volume 8 Issue 1, 2016
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol8.iss1.art3

Abstract

This paper examines the growth experience of Indonesia in the years before and after the Asian financial crisis. Particular attention is paid to the relationship between economic growth and petroleum sector’s total factor productivity (TFP). It finds the possibility that post-crisis Indonesian economic growth has ‘recoupled’ with petroleum sector’s TFP – fluctuations in petroleum TFP is directly correlated with fluctuations in economic growth. Further, although keeping Indonesia’s petroleum sector open to fair competition should be the prime policy, the fact regarding resource nationalism might need to be taken into account in designing the policy to develop the productivity of Indonesia’s petroleum sector.
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