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Journal : Economic Journal of Emerging Markets

Dutch Disease Economics A case Study of Indonesia Rini Yayuk Priyati
Economic Journal of Emerging Markets Volume 1 Issue 3, 2009
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.v1i3.2287

Abstract

The term ‘Dutch disease’ was first used to describe the indirect effects of the boom in the gas sectorin the Netherlands in the 1960s on other sectors. This paper applies this framework to analysethe impact of the 2007-2008 surge in oil and gas prices in Indonesia. It finds that this has induced areal appreciation of the Rupiah. In contrast to ‘Dutch disease’ theory, it has been accompanied bygrowth in agricultural and manufacturing exports. The simulation results suggest that the observedreal appreciation due to the booming energy has inhibited the growth of Indonesian exports of agriculturaland manufacturing products.Keywords: Dutch disease, energy, agricultural and manufacturing exports
Determinants of global palm oil demand: a gravity approach Rini Yayuk Priyati
Economic Journal of Emerging Markets Volume 10 Issue 2, 2018
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol10.iss2.art4

Abstract

This paper reviews the determinants of global palm oil trade using the gravity model. This model helps to explain how the shift in demand for palm oil has affected trade flows among trading partners. We decompose the effects of growth in the regional markets, location, and the reduction in the palm oil price relative to other edible oils, on palm oil exports. We find that standard variables suggested by the gravity literature, such as the growth of GDP, GDP per capita, and location, are indeed important determinants of palm oil trade. Given the preceding results, we simulate whether the economic growth of Indonesia’s trading partners can explain the growth in palm oil export demand from Indonesia. The simulation results for top ten Indonesia’s trading partners suggest that the growth of palm oil imports is a great deal higher than the growth of income for all countries.