Year: 1991
Type: article
Abstract: The paper explores the impact of the stabilization and structural adjustment policy package implemented in Indonesia during 1982-88 following the drop in oil prices on growth, income distribution, internal and external equilibrium. The paper argues that the adopted policy package that included widespread structural reforms with standard stabilization policies was successful in restoring internal and external equilibrium. The paper also presents a highly disaggregated computable general equilibrium model of Indonesia, integrating a real sector and a financial sector to examine the distributional effects of a number of alternative policy packages. The impact of six alternative policy scenarios on the whole socioeconomic system is simulated and compared, both in terms of their short-run and long-run effects during the adjustment phase with the adopted adjustment package. The simulations reveal that, by and large, the selected adjustment package was successful in restoring equilibrium and improving income distribution.
Source: World Development
Author: Erik Thorbecke
Institution: Cornell University
Language: English
Topic: Economic Theory and Policy
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $5,895
OpenAlex ID: W1965917141