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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 A.A. Istri Diah Paramita, A.A. Istri Adi Wirawan Komang Agus Yoga Indra Yudha, Putu Aliya Nabila Nisriina Anak Agung Bagus Putu Widanta Anak Agung Bagus Widanta Andin Meilenia Sani Aryantini, Ni Luh Kade Manik Indah Berliana, I Dewa Ayu Tresia Christo Fanre Parlindungan Sembiring Cok istri Sinta regina Trisnu Desak Putu Putri Maharani Eka Amelia Rosidi Firda Rizky Amalia Handayani, Ni Putu Mery Hermawan, Kanaya I B Nyoman Kesumayuda I Dewa Gede Satya Adi Wismaya I Gusti Bagus Indrajaya I Gusti Wayan Murjana Yasa I Ketut Sudibia I Made Endra Kartika Yudha I Made Putra Yasa I Nyoman Mahaendra Yasa I Putu Agus Ari Wiguna I Putu Hedi Sasrawan I Putu Junior Surya Ananda I.G. Indrajaya I.W. Sukadana Ida Ayu Diah Fitri, Ida Ayu Diah Ida Ayu Meisthya Pratiwi Ida Ayu Sri Nanda Atasya IM Suyana Utama Johanda Dinata, I Nyoman K.S. Nata Kadek Bunga Darma Yanti Ketut Shanti Cintya Devi Lidwina Lidia Kasipmabin Made Kembar Sri Budhi Made Sukarsa Manuaba, Ida Ayu Reka Adnyani mariana novena Mohamad Suryadi Mudana, I Wayan Eva Myanti Astrini NGURAH WISNU MURTHI Ni Kadek Sri Wahyuni Ni Luh Karmini Ni Luh Putu Kartika Dewi Ni Made Ratiabriani Ni Made Tisnawati Ni Nyoman Reni Suasih Ni Putu Dian Rahayu Ningsih Ni Putu Wiwin Setyari Nilam Ulandari, Ida Ayu Nyoman Djinar Setiawina Pradnyadewi, Diah Putra Yasa, I Made Putri Gayatri Wijayanti Putu Desy Apriliani Rio Agung Prawoto S. Arka Sahadewa, I Dewa Gede Nanda Sakita Laksmi Dewi Septia Utami, Ika Sri Handayani, Ida Ayu Putu Suartawan, Komang Sugion, I Putu Gede France Suka Prameswari, Kadek Putri Triarsa, I Gusti Ngurah Bayu Udiyana Putra, I Made Utami Dewi, A. A. Ayu Krisna W. Wenegama Wayan Yogiswara Yasa, I Made Putra