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Dutch disease economics a case study of Indonesia

Author

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  • Rini Yayuk Priyati

    (Department of Economics, Universitas Terbuka, Indonesia)

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 en

Suggested Citation

  • Rini Yayuk Priyati, 2009. "Dutch disease economics a case study of Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 1(3), pages 147-159, April.
    • Handle: RePEc:uii:journl:v:1:y:2009:i:3:p:147-159
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    File URL: https://journal.uii.ac.id/JEP/article/download/2287/2086
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    References listed on IDEAS

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    2. Grant Mark Nülle & Graham A. Davis, 2018. "Neither Dutch nor disease?—natural resource booms in theory and empirics," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 31(1), pages 35-59, May.

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    More about this item

    Keywords

    Dutch disease; energy; agricultural and manufacturing exports;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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