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Journal : Journal of Economics, Business,

Industrial Structure, Demographic Pattern, and Indonesian Current Account Ni Putu Wiwin Setyari; Ida Bagus Putu Purbadharmaja; Ni Luh Karmini
Journal of Economics, Business, & Accountancy Ventura Vol 19, No 3 (2016): December 2016 - March 2017
Publisher : STIE Perbanas Surabaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jebav.v19i3.619

Abstract

The new trade theory shows the interaction between capital intensity, reflects the comparative advantages of a country as well as the industrial structure, and international capital flows. One main proposition stated if a country has high capital intensity in their industrial structure, and changes tends to be capital intensive, foreign capital will flow into the country because the domestic savings position become lower than investment needs. It can explain why international capital flows from developing countries to the developed countries that are relatively rich in capital. This study attempted to examine the consistency and reliability of the theory in the context of Indonesia. The important thing here is the existence of different viewpoints in assessing the phenomenon of the current account balance. The model used is the restricted error correction mechanism in Autoregressive Distributed Lag (ECM-ARDL) approach. The result indicates that both industrial structure and demographic pattern are affecting Indonesian current account significantly. Specifically, capital intensity negatively affects Indonesian current account. This indicates the higher capital intensity, which means the greater tendency to capital-intensive industry structure, leads to higher current account deficit. The analysis also highlights the importance of demographic pattern in determines Indonesian current account through their impact to savings – investment position.
Industrial Structure, Demographic Pattern, and Indonesian Current Account Setyari, Ni Putu Wiwin; Purbadharmaja, Ida Bagus Putu; Karmini, Ni Luh
Journal of Economics, Business, and Accountancy Ventura Vol. 19 No. 3 (2016): December 2016 - March 2017
Publisher : Universitas Hayam Wuruk Perbanas

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14414/jebav.v19i3.619

Abstract

The new trade theory shows the interaction between capital intensity, reflects the comparative advantages of a country as well as the industrial structure, and international capital flows. One main proposition stated if a country has high capital intensity in their industrial structure, and changes tends to be capital intensive, foreign capital will flow into the country because the domestic savings position become lower than investment needs. It can explain why international capital flows from developing countries to the developed countries that are relatively rich in capital. This study attempted to examine the consistency and reliability of the theory in the context of Indonesia. The important thing here is the existence of different viewpoints in assessing the phenomenon of the current account balance. The model used is the restricted error correction mechanism in Autoregressive Distributed Lag (ECM-ARDL) approach. The result indicates that both industrial structure and demographic pattern are affecting Indonesian current account significantly. Specifically, capital intensity negatively affects Indonesian current account. This indicates the higher capital intensity, which means the greater tendency to capital-intensive industry structure, leads to higher current account deficit. The analysis also highlights the importance of demographic pattern in determines Indonesian current account through their impact to savings – investment position.
Co-Authors Anak Agung Bagus Widanta Apriani, Anak Agung Rai Inten Arnawa, I Gede Wirya Krishna Candra Pramana I Gede Ary Deljansen Yohanes Thesia Dewi, Anak Agung Diah Pradnya Dewi, Ifanda Puspita Elisa Florencia Ghina Rachmita Ayuningati Handy Wiramartha, Pande Nyoman I Gede Dea Joendra Septyana Putra I Gusti Ayu Made Dian Anugrahita Dewi I Gusti Wayan Murjana Yasa I Kadek Aditya Kusumanegara I Kadek Java Prawira Upadana I Ketut Sutrisna I Komang Gede Setia Wirawan I Made Adikampana, I Made I Made Andre Prana Cita I Made Endra Kartika Yudha I Made Wahyu Suarjaya I Nengah Marbek I Nyoman Bayu Sugiarta Wiguna I Nyoman Sukma Arida I Nyoman Sunarta I Putu Irvan, I Putu I Wayan Artana, I Wayan I Wayan Wenagama Ida Ayu Nyoman Sakara Ida Ayu Nyoman Yuliastuti Ida Bagus Purbadharmaja Ida Bagus Wahyu Cahaya Pratama Indri Ani, Ni Wayan Ika Asri Krisnayanthi, Putu Arinda Larashati, Ni Komang Made Hardi Satryana, Made Hardi Made Kembar Sri Budhi Meita Puspita Sari Nainggolan, Kristina Nainggolan Ni Komang Pande Wiasih Ni Luh Sarasgita Ni Made Maya Candamayanti Ni Made Mela Cintya Dewi Ni Made Tisnawati Ni Nyoman Reni Suasih Ni Nyoman Setya Ari Wijayanti Ni Putu Arista Maharani Putri Ni Putu Nanda Pramesti Nata Putri Ni Putu Wiwin Setyari Nugraha, I Komang Agus Rai Oka, I Gusti Ayu Michelle Audi Natasha Pande Bagus Dharma Kusuma Putra Astawa Pande Kadek Livia Fasanta Pande Putu Erwin Pradana, I Made Adi Putu Ayu Pramitha Purwanti Putu Shannia Krisna Ningrat Putu Wanda Ayu Sumantri Putu Yasti Putri Arniyasa Saptono Nugroho, Saptono simanjuntak, wanda Suardani, Ni Luh Anik Widyastiti, Ni Komang Wiwiek Yeni Istanti, Yeni Yesika Resianna Barimbing, Yesika Resianna