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A case of Timor-Leste: From independence to instability or prosperity?

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  • Wang, Di
  • Wang, Dong
  • Wang, Weiren

Abstract

This paper analyzes the economic growth problems of Timor-Leste since its independence. As for a typical country whose economic growth is mostly relying on the petroleum revenues, its monotonous source of income seems to be the biggest obstacle. Therefore, this article mainly analyzed the possible solutions for how to sustain and manage the economic growth for Timor-Leste. As the Strategic Development Plan was issued in 2011 by Timor-Leste government, a high-quality public spending strategy was set to be the main method to reach a rapid economic growth. Following this strategy, this paper indicates three plausible solutions consist of improvement of infrastructure, coffee production and trades, and development of tourism. After comparing these three alternatives according to the criterion of effectiveness and timing, the conclusion of this paper goes to the improvement of infrastructure being the best solution for Timor-Leste.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 43751.

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Date of creation: 28 Dec 2012
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Handle: RePEc:pra:mprapa:43751

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Keywords: Timor-Leste; GDP; Dutch Disease;

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  1. Egil Matsen & Ragnar Torvik, 2002. "Optimal Dutch Disease," Working Paper Series 2703, Department of Economics, Norwegian University of Science and Technology.
  2. Victoria Dobrynskaya & Edouard Turkisch, 2010. "Economic diversification and Dutch disease in Russia," Post-Communist Economies, Taylor & Francis Journals, vol. 22(3), pages 283-302.
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