Abstract

The term 'Dutch disease' was first used to describe the indirect effects of the boom in the gas sector in the Netherlands in the 1960s on other sectors. This paper applies this framework to analyse the impact of the 2007-2008 surge in oil and gas prices in Indonesia. It finds that this has induced a real appreciation of the Rupiah. In contrast to 'Dutch disease' theory, it has been accompanied by growth in agricultural and manufacturing exports. The simulation results suggest that the observed real appreciation due to the booming energy has inhibited the growth of Indonesian exports of agricultural and manufacturing products.

Details

Title
Dutch Disease Economics A case Study of Indonesia
Author
Rini Yayuk Priyati
Pages
147-164
Section
Articles
Publication year
2009
Publication date
2009
Publisher
Universitas Islam Indonesia
ISSN
20863128
e-ISSN
2502180X
Source type
Scholarly Journal
Language of publication
English
ProQuest document ID
2284833971
Copyright
© 2009. This work is published under http://creativecommons.org/licenses/by-sa/4.0/ (the “License”). Notwithstanding the ProQuest Terms and Conditions, you may use this content in accordance with the terms of the License.