Natural Resources Curse in Indonesia

Heru Wahyudi and Widia Anggi Palupi
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Heru Wahyudi: Faculty of Economics and Business, University of Lampung, Indonesia.
Widia Anggi Palupi: Faculty of Economics and Business, University of Lampung, Indonesia.

International Journal of Energy Economics and Policy, 2023, vol. 13, issue 2, 349-356

Abstract: The purpose of this study is to find out whether there is a curse or blessing of Indonesia's natural resources and to find out how the long-term influence of natural resource rents, foreign direct investment, inflation, and the Covid-19 pandemic on economic growth. Based on the purpose of the study, the method used is a Fully Modified Ordinary Least Square (FMOLS). The results show that Indonesia is free from the curse of natural resources, meaning that Indonesia's natural resources have blessings for economic growth. In addition, based on the FMOLS test, it is known that foreign direct investment has not influenced economic development. Meanwhile, inflation and Covid-19 have a negative and significant influence on Indonesia's economic growth.

Keywords: Economic growth; natural resource rents; foreign direct investment; inflation; Covid-19 (search for similar items in EconPapers)
JEL-codes: E22 O11 Q00 (search for similar items in EconPapers)
Date: 2023
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