Institutions have been argued to shape economic performance. Countries with effective governments, transparent regulations, and credible legal systems generally experience faster growth, attract greater investment, and trade more with the rest of the world. Primary commodities, including agricultural products, minerals, and energy resources, continue to account for a substantial share of exports in many developingContinue reading “Institutions and Commodity Exports of Indonesia”
Category Archives: Discussion
Digital Services Trade, Economic Capacity and Innovation
The rapid expansion of digital technologies has transformed international trade. Services that once required physical proximity, including finance, software development, consulting, engineering, education, and creative industries, can now be delivered across borders through digital networks. As a result, digitally delivered services have become one of the fastest-growing components of global trade. Nonetheless, less is knownContinue reading “Digital Services Trade, Economic Capacity and Innovation”
Lessons Learned: Decision
Among numerous lessons learned over the past three decades, one valuable lesson is related to decisions. This post discusses decisions and lessons learned from them. It argues that we need to optimise our decisions to maximise our satisfaction in both the current and future periods, giving at least as much value to the future asContinue reading “Lessons Learned: Decision”
Do Trade Barriers Slow Growth? What New Evidence Reveals
A long-standing debate in economics asks whether trade restrictions help or hinder economic performance. A recent study revisits this question with a clear focus: not on prices or welfare proxies, but on what ultimately matters for policymakers—economic growth. Using multicountry data, the study examines how different types of trade restrictions shape growth outcomes across diverseContinue reading “Do Trade Barriers Slow Growth? What New Evidence Reveals”
Revisiting Trade Restrictions and Export Purchasing Power
A recent article in the International Economic Journal revisits a classic question in international economics: do trade restrictions actually improve a country’s welfare? Rather than relying on the traditional terms of trade (TOT) — the ratio of export prices to import prices — the study focuses on a more comprehensive indicator, the income terms ofContinue reading “Revisiting Trade Restrictions and Export Purchasing Power”
Purposes and Existence Absurdity
Humans tend to make assumptions, hypotheses or temporary answers when facing uncertainty and the unknown, as these are often perceived as unfamiliarity and unpredictability, which can be identified as threats or uncomfortable situations, forcing individuals to rationalise or make sense of such conditions. While assumptions and hypotheses are usually useful in the short run, havingContinue reading “Purposes and Existence Absurdity”
Reevaluating Work Values: The Importance of Aligning Passion, Expertise, and Job
The Monday blues constitute a situation that can demotivate an individual through dreadful feelings and negative emotions, particularly felt on Mondays. For workers, one reason could be job dissatisfaction, which might be due to various factors. A contributing factor is the mismatch between the substance or tasks being performed at the job and one’s interest,Continue reading “Reevaluating Work Values: The Importance of Aligning Passion, Expertise, and Job”
Rethinking Commodity Dependence: Its Impact on Economic Inequality, Growth, and Human Development
As global markets continue to evolve, the relationship between commodity dependence and various facets of economic development warrants deeper examination. Many countries heavily rely on exports of primary commodities such as oil, minerals, and agricultural products, which can significantly influence their economic trajectories. However, an increasing body of research points to the troubling implications ofContinue reading “Rethinking Commodity Dependence: Its Impact on Economic Inequality, Growth, and Human Development”
The Interplay of Digital Services Trade, Trade Restrictions, and Institutional Quality
In today’s interconnected world, digital services trade has emerged as a cornerstone of international commerce, providing numerous opportunities for innovation and economic growth. With the rapid advancement of technology and digital connectivity, countries can facilitate cross-border transactions for services such as software development, digital marketing, and online education. While digital services trade restrictions might secureContinue reading “The Interplay of Digital Services Trade, Trade Restrictions, and Institutional Quality”
Anomaly or Structural Issue? The Curious Case of the Indonesian Middle Class and Low Purchasing Power
The lowering purchasing power and the declining middle-income class have recently become rising economic issues in Indonesia. The lower purchasing power is concerning as, according to Statistics Indonesia (Badan Pusat Statistik, BPS) data, more than half of the Indonesian macroeconomic condition is attributed to household consumption, while the middle class has become the backbone ofContinue reading “Anomaly or Structural Issue? The Curious Case of the Indonesian Middle Class and Low Purchasing Power”
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