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Capital formation and capital stock in Indonesia, 1950-2008

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  • Pierre van der Eng

Abstract

This article presents long-term estimates of gross fixed capital formation, disaggregated by category of productive assets, for the period 1951-2008. These data, combined with approximations of probable average asset lives and a plausible asset retirement procedure, are used in a perpetual inventory method framework to estimate gross fixed capital stock in Indonesia for the years 1950-2008, disaggregated by productive asset category. Total capital stock grew significantly from the late 1960s, at about 10% per year, until the 1997-98 economic crisis. The high capital-output ratio in 1997 suggests that a significant part of Indonesia's rapid economic growth during the 1990s was due to capital accumulation.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00074910903301662
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Bulletin of Indonesian Economic Studies.

Volume (Year): 45 (2009)
Issue (Month): 3 ()
Pages: 345-371

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Handle: RePEc:taf:bindes:v:45:y:2009:i:3:p:345-371

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Cited by:
  1. van der Eng, Pierre, 2010. "The sources of long-term economic growth in Indonesia, 1880-2008," Explorations in Economic History, Elsevier, vol. 47(3), pages 294-309, July.

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