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Sustaining economic growth with a nonrenewable natural resource: The case of oil‐dependent Indonesia
Author(s) -
Arif M. Tasrif,
Saeed Khalid
Publication year - 1989
Publication title -
system dynamics review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.491
H-Index - 57
eISSN - 1099-1727
pISSN - 0883-7066
DOI - 10.1002/sdr.4260050103
Subject(s) - natural resource , non renewable resource , resource (disambiguation) , sustainable growth rate , sustainable development , economics , capital (architecture) , natural resource economics , capital accumulation , growth model , set (abstract data type) , economic system , macroeconomics , environmental economics , computer science , economic growth , human capital , renewable energy , engineering , finance , history , ecology , computer network , archaeology , law , political science , electrical engineering , biology , programming language
This study uses a system dynamics model based on an integration of micro‐and macroeconomic theories to understand economic growth with a nonrenewable natural resource. The case of oil‐dependent Indonesia is used as an empirical reference for the study. Long‐run growth patterns resulting from various intuitively appealing development policies are analyzed, and an attempt is made to identify the best policy set for attaining a sustainable growth pattern. The study shows that influencing factor prices to facilitate adoption of capital‐intensive technologies accelerates development and is a key policy for sustaining growth in the long run.