Back to oil: Indonesia economic growth after Asian financial crisis
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 sectorâ€™s total factor productivity (TFP). It finds the possibility that post-crisis Indonesian economic growth has â€˜recoupledâ€™ with petroleum sectorâ€™s TFP â€“ fluctuations in petroleum TFP is directly correlated with fluctuations in economic growth. Further, although keeping Indonesiaâ€™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 Indonesiaâ€™s petroleum sector.
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Economic Journal of Emerging Markets (EJEM)
ISSN 2086-3128 (print), ISSN 2502-180X (online)
Center for Economic Studies, Department of Economics,
Universitas Islam Indonesia, Indonesia.
EJEM by http://journal.uii.ac.id/JEP/ is licensed under a Creative Commons Attribution 4.0 International License.