electrical engineering department of the Bandung Institute of Technology. He has also worked as a research associate at the Asian Institute of Technology. Mr. Arif holds an M.Eng. degree in industrial engineering and management from the Asian Institute of Technology and a Sarjana Teknik in electrical engineering from the Bandung Institute of Technology.
Sustaining economic growth with a nonrenewable natural resource: The case of oil-dependent Indonesia
Article first published online: 22 DEC 2006
Copyright © 1989 John Wiley & Sons, Ltd.
System Dynamics Review
Volume 5, Issue 1, pages 17–34, Winter 1989
How to Cite
Arif, M. T. and Saeed, K. (1989), Sustaining economic growth with a nonrenewable natural resource: The case of oil-dependent Indonesia. Syst. Dyn. Rev., 5: 17–34. doi: 10.1002/sdr.4260050103
- Issue published online: 22 DEC 2006
- Article first published online: 22 DEC 2006
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.