Investasi Swasta dan Pemerintah; Substitusi alau Komplementer ?: Kasus Indonesia

Muhamad Basri and Mohamad Ikhsan
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Mohamad Ikhsan: Faculty of Economics, University of Indonesia, Jakarta

Economics and Finance in Indonesia, 1991, vol. 39, 359-394

Abstract: The purpose of the articel is three-fold. First, to contruct an investment function for Indonesia. Second, to test the relation between govemment and private investments. Third, to test McKinnon's proposition that investment in developing countries is constrained by credit availibility, rather than interest rate. Based on a .synthesis of neoclassical and Keynessian models, the autlwrs construct a model of private investment in Indonesia, which is assumed to be a function of expectations about output, cyclical and fiscal variables, monetary conditions and exchange rates. They find that govemment investment is a complement for private investment. This complementarity relation ship is caused by the sources of finance in the past, which was mainly from foreign sources. In addition, a bulk of govemment investment is aimed at infrastructures. They also find that monetary policy has no impact in the short run, but does affect private investment in the longer term. Exchange rate management employing nominal exchange rate target tends to push the price level by rising the price of imported input

Keywords: investment; exchange; fiscal; pemerintah; internvesi; distorsi (search for similar items in EconPapers)
Date: 1991
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