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”
Tag Archives: economics
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”
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”
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”
ASEAN’s Regional Economic Integration Amidst the Digital Era
Cross-border transactions involving services include the movement of either the producer, the consumer, or capital for investment purposes. The General Agreement on Trade in Services (GATS) defines cross-border trade in services using four modes of supply: Mode 1 involves the flow of services from one country’s territory to the trade partner’s territory; Mode 2 consistsContinue reading “ASEAN’s Regional Economic Integration Amidst the Digital Era”
On The Potential Effect of Türkiye’s Decrease in Interest Rate on Its Macroeconomic Outcomes
As the government of Türkiye has decided to lower the interest rate (Pitel, 2022), one important question that arises would be: what is the impact of the decision on the Türkiye economy? To answer the possible effect on Türkiye’s economy, the IS-LM theory in international macroeconomics can be applied as an explanation as it isContinue reading “On The Potential Effect of Türkiye’s Decrease in Interest Rate on Its Macroeconomic Outcomes”
Revisiting the Relevance of International Macroeconomic Policy Coordination
Given the uncertainty in the current global economic situation, one question arises regarding whether international macroeconomic policy coordination is still relevant. The choice of whether to implement international macroeconomic policy coordination depends on the specific circumstances, as explained in previous literature on the topic. First, the success of cooperation and coordination principally requires the sharingContinue reading “Revisiting the Relevance of International Macroeconomic Policy Coordination”
On Dilemma Not Trilemma: The Global Financial Cycle and Monetary Policy Independence
Based on the theory (Feenstra and Taylor, 2016), three key conditions faced by open economies: a fixed exchange rate that can enhance stability in trade and investment, free international capital mobility that can promote integration, efficiency, and risk-sharing, and monetary policy autonomy that can provide control over the economy’s business cycle. The trilemma suggests thatContinue reading “On Dilemma Not Trilemma: The Global Financial Cycle and Monetary Policy Independence “
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