IDEAS home Printed from https://ideas.repec.org/a/uii/journl/v8y2016i1p25-44.html
   My bibliography  Save this article

Back to oil: Indonesia economic growth after Asian financial crisis

Author

Listed:
  • Heru Iswahyudi

    (Ministry of Finance Republic of Indonesia)

Abstract

This paper examines the growth experience of Indonesia in the years before and after the Asian financial crisis. Particular attention is paid to the relationship between economic growth and petroleum sector?s total factor productivity (TFP). It finds the possibility that post-crisis Indonesian economic growth has „recoupled? with petroleum sector?s TFP – fluctuations in petroleum TFP is directly correlated with fluctuations in economic growth. Further, although keeping Indonesia?s petroleum sector open to fair competition should be the prime policy, the fact regarding resource nationalism might need to be taken into account in designing the policy to develop the productivity of Indonesia?s petroleum sector.

Suggested Citation

  • Heru Iswahyudi, 2016. "Back to oil: Indonesia economic growth after Asian financial crisis," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 8(1), pages 25-44, April.
    • Handle: RePEc:uii:journl:v:8:y:2016:i:1:p:25-44
    DOI: 10.20885/ejem.vol8.iss1.art3
    as

    Download full text from publisher

    File URL: https://journal.uii.ac.id/JEP/article/download/4450/3935
    Download Restriction: no
    File URL: https://journal.uii.ac.id/JEP/article/view/4450/3935
    Download Restriction: no
    File URL: https://libkey.io/10.20885/ejem.vol8.iss1.art3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. J. Soedradjad Djiwandono, 2000. "Bank Indonesia and The Recent Crisis," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 36(1), pages 47-72.
    2. Moschini, Giancarlo, 1991. "Economic issues in tariffication: an overview," Agricultural Economics, Blackwell, vol. 5(2), pages 101-120, June.
    3. M. Chatib BASRI & Hal HILL, 2011. "Indonesian Growth Dynamics," Asian Economic Policy Review, Japan Center for Economic Research, vol. 6(1), pages 90-107, June.
    4. Margono, Heru & Sharma, Subhash C., 2006. "Efficiency and productivity analyses of Indonesian manufacturing industries," Journal of Asian Economics, Elsevier, vol. 17(6), pages 979-995, December.
    5. Michael Boyd & Anne Devero & Jennifer Frias & Jeff Meyer & Greg Ross, 2010. "A note on policies for the oil and gas sector," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 46(2), pages 237-248.
    6. George Soros, 1999. "The International Financial Crisis," Challenge, Taylor & Francis Journals, vol. 42(2), pages 58-76, March.
    7. Carmen M. Reinhart & Graciela L. Kaminsky, 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments Problems," American Economic Review, American Economic Association, vol. 89(3), pages 473-500, June.
    8. Thee Kian Wie, 2003. "The Indonesian economic crisis and the long road to recovery," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 43(2), pages 183-196, July.
    9. Scott L. Baier & Gerald P. Dwyer & Robert Tamura, 2006. "How Important are Capital and Total Factor Productivity for Economic Growth?," Economic Inquiry, Western Economic Association International, vol. 44(1), pages 23-49, January.
    10. Carmen M. Reinhart & Graciela L. Kaminsky, 1999. "The Twin Crises: The Causes of Banking and Balance-of-Payments Problems," American Economic Review, American Economic Association, vol. 89(3), pages 473-500, June.
    11. Young, Alwyn, 1994. "Lessons from the East Asian NICS: A contrarian view," European Economic Review, Elsevier, vol. 38(3-4), pages 964-973, April.
    12. James E. Anderson, 1988. "The Relative Inefficiency of Quotas," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262511789, December.
    13. Levine, Ross & Zervos, Sara J, 1993. "What We Have Learned about Policy and Growth from Cross-Country Regressions?," American Economic Review, American Economic Association, vol. 83(2), pages 426-430, May.
    14. World Bank, 2000. "Indonesia : Oil and Gas Sector Study," World Bank Publications - Reports 15255, The World Bank Group.
    15. Hal Hill, 2000. "Indonesia: The Strange and Sudden Death of a Tiger Economy," Oxford Development Studies, Taylor & Francis Journals, vol. 28(2), pages 117-139.
    16. Po-Chi Chen & Ming-Miin Yu, 2014. "Total factor productivity growth and directions of technical change bias: evidence from 99 OECD and non-OECD countries," Annals of Operations Research, Springer, vol. 214(1), pages 143-165, March.
    17. Mohamad Ikhsan, 2007. "Total Factor Productivity Growth in Indonesian Manufacturing: A Stochastic Frontier Approach," Global Economic Review, Taylor & Francis Journals, vol. 36(4), pages 321-342.
    18. World Bank, 2014. "World Development Indicators 2014," World Bank Publications - Books, The World Bank Group, number 18237, December.
    19. Hill,Hal, 2000. "The Indonesian Economy," Cambridge Books, Cambridge University Press, number 9780521663670, November.
    20. Shawna Grosskopf & Sharmistha Self, 2006. "Factor Accumulation Or Tfp? A Reassessment Of Growth In Southeast Asia," Pacific Economic Review, Wiley Blackwell, vol. 11(1), pages 39-58, February.
    21. Armida Alisjahbana, 2009. "Revisiting Indonesia’s Sources of Economic Growth and Its Projection Towards 2030," Working Papers in Economics and Development Studies (WoPEDS) 200905, Department of Economics, Padjadjaran University, revised Jul 2009.
    22. H. Aswicahyono & H. Hill, 2002. "'Perspiration' vs 'Inspiration' in Asian Industrialisation: Indonesia Before the Crisis," Journal of Development Studies, Taylor & Francis Journals, vol. 38(3), pages 138-163.
    23. World Bank, 2012. "World Development Indicators 2012," World Bank Publications - Books, The World Bank Group, number 6014, December.
    24. Katy Cornwell & Titik Anas, 2013. "Survey of recent developments," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 49(1), pages 7-33, April.
    25. Ministry of Agriculture GOI, 2015. "Annual Report: 2010-2011," Working Papers id:6767, eSocialSciences.
    26. World Bank, 2012. "World Development Report 2012 [Rapport sur le développement dans le monde 2012]," World Bank Publications - Books, The World Bank Group, number 4391, December.
    27. Dowling, J. Malcolm & Yap, Chin-Fang, 2008. "Indonesian economic development: Mirage or miracle?," Journal of Asian Economics, Elsevier, vol. 19(5-6), pages 474-485.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rahmatina A. Kasri, 2011. "Explaining the Twin Crises in Indonesia," Working Papers in Economics and Business 201102, Faculty of Economics and Business, University of Indonesia, revised May 2011.
    2. Wishnu Mahraddika, 2021. "How effective is capital flow management? The Indonesian experience," Departmental Working Papers 2021-15, The Australian National University, Arndt-Corden Department of Economics.
    3. Basri, Muhammad Chatib, 2013. "A Tale of Two Crises: Indonesia’s Political Economy," Working Papers 57, JICA Research Institute.
    4. Fendel Ralf & Stremmel Hanno, 2016. "Characteristics of Banking Crises: A Comparative Study with Geographical Contagion," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(3), pages 349-388, May.
    5. Gimet, Celine, 2007. "Conditions necessary for the sustainability of an emerging area: The importance of banking and financial regional criteria," Journal of Multinational Financial Management, Elsevier, vol. 17(4), pages 317-335, October.
    6. Burnside, Craig & Eichenbaum, Martin & Rebelo, Sergio, 2001. "Hedging and financial fragility in fixed exchange rate regimes," European Economic Review, Elsevier, vol. 45(7), pages 1151-1193.
    7. I.Igal Magendzo, 2002. "Are Devaluations Really Contractionary?," Working Papers Central Bank of Chile 182, Central Bank of Chile.
    8. Matthieu Bussière, 2013. "Balance of payment crises in emerging markets: how early were the ‘early’ warning signals?," Applied Economics, Taylor & Francis Journals, vol. 45(12), pages 1601-1623, April.
    9. Khan, Haider, 2013. "Global Financial Governance: Towards a New Global Financial Architecture for Averting Deep Financial Crises," MPRA Paper 49275, University Library of Munich, Germany.
    10. Jong‐Wha Lee & Changyong Rhee, 2002. "Macroeconomic Impacts of the Korean Financial Crisis: Comparison with the Cross‐country Patterns," The World Economy, Wiley Blackwell, vol. 25(4), pages 539-562, April.
    11. Joon-Ho Hahm & Hyun Song Shin & Kwanho Shin, 2013. "Noncore Bank Liabilities and Financial Vulnerability," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 45, pages 3-36, August.
    12. Andre Cartapanis, 2004. "Le declenchement des crises de change : qu'avons-nous appris depuis dix ans ?," Economie Internationale, CEPII research center, issue 97, pages 5-48.
    13. Purificacion Parrado-Martinez & Antonio Parta Ureña & Pilar Gomez Fernandez-Aguado, 2014. "Usefulness of Financial Soundness Indicators for risk assessment: The case of EU member countries," Working Papers 14.01, Universidad Pablo de Olavide, Department of Financial Economics and Accounting (former Department of Business Administration).
    14. Barry Eichengreen & Michael D. Bordo, 2003. "Crises now and then: what lessons from the last era of financial globalization?," Chapters, in: Paul Mizen (ed.), Monetary History, Exchange Rates and Financial Markets, chapter 3, Edward Elgar Publishing.
    15. A. G. Malliaris, 2005. "Global monetary instability: The role of the IMF, the EU and NAFTA," World Scientific Book Chapters, in: Economic Uncertainty, Instabilities And Asset Bubbles Selected Essays, chapter 20, pages 323-343, World Scientific Publishing Co. Pte. Ltd..
    16. Thierry Tressel & Thierry Verdier, 2011. "Financial Globalization and the Governance of Domestic Financial Intermediaries," Journal of the European Economic Association, European Economic Association, vol. 9(1), pages 130-175, February.
    17. Rhee, Dong-Eun & Kim, Hyoungjong, 2018. "Does income inequality lead to banking crises in developing countries? Empirical evidence from cross-country panel data," Economic Systems, Elsevier, vol. 42(2), pages 206-218.
    18. Barry Eichengreen and Carlos Arteta., 2000. "Banking Crises in Emerging Markets: Presumptions and Evidence," Center for International and Development Economics Research (CIDER) Working Papers C00-115, University of California at Berkeley.
    19. Komulainen, Tuomas, 2001. "Currency crises in emerging markets : Capital flows and herding behaviour," BOFIT Discussion Papers 10/2001, Bank of Finland, Institute for Economies in Transition.
    20. Hali J. Edison, 2003. "Do indicators of financial crises work? An evaluation of an early warning system," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 8(1), pages 11-53.

    More about this item

    Keywords

    economic growth; total factor productivity; oil and gas; Indonesia;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:uii:journl:v:8:y:2016:i:1:p:25-44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ana Yuliani (email available below). General contact details of provider: https://journal.uii.ac.id/JEP/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.