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Natural Resources Curse in Indonesia

Author

Listed:
  • Heru Wahyudi

    (Faculty of Economics and Business, University of Lampung, Indonesia.)

  • Widia Anggi Palupi

    (Faculty of Economics and Business, University of Lampung, Indonesia.)

Abstract

The purpose of this study is to find out whether there is a curse or blessing of Indonesia's natural resources and to find out how the long-term influence of natural resource rents, foreign direct investment, inflation, and the Covid-19 pandemic on economic growth. Based on the purpose of the study, the method used is a Fully Modified Ordinary Least Square (FMOLS). The results show that Indonesia is free from the curse of natural resources, meaning that Indonesia's natural resources have blessings for economic growth. In addition, based on the FMOLS test, it is known that foreign direct investment has not influenced economic development. Meanwhile, inflation and Covid-19 have a negative and significant influence on Indonesia's economic growth.

Suggested Citation

  • Heru Wahyudi & Widia Anggi Palupi, 2023. "Natural Resources Curse in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 349-356, March.
    • Handle: RePEc:eco:journ2:2023-02-39
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Economic growth; natural resource rents; foreign direct investment; inflation; Covid-19;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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