Regional Economic Modelling for Indonesia: Implementation of the IRSA-INDONESIA5
Ten years after the implementation of a major decentralization policy, issues of inter-regional disparities in income and rates of natural resource extraction still figure prominently in Indonesian economic policy debate. There is great interest in identifying the macro policies that would reduce regional income disparity and better control the rate of natural extraction, while maintaining reasonable national economic growth. In this paper we develop an inter-regional computable general equilibrium model (IRSA-INDONESIA5) as an appropriate tools for analysis these issues and employ it to examine economy-wide impacts of various policies under consideration.
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