The domestic resource gap and current transaction deficit in Indonesia in 2010-2014

  • Received February 3, 2017;
    Accepted February 17, 2017;
    Published May 16, 2017
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  • Article Info
    Volume 14 2017, Issue #1 (cont.), pp. 263-267
  • Cited by
    2 articles

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The purpose of this study is to determine the relationship between domestic financial resource gaps and current account balance in Indonesia by using data from 2010 to 2014. Gaps in the domestic economy are classified into three types: 1) the domestic absorptive capacity of the national income gap (GNP), 2) gross national savings and investment gap, 3) private sector gap (private saving minus private investment), and public sector gap (tax minus government spending). By using a concept of open economy that is described in a theoretical framework, the study results show that: 1) the gap absorption of domestic and GNP, 2) the gap between gross national saving and gross national investments, 3) the gap in private sector and government sector resulting in deficit in the current account during Indonesia on 2010-2014 periods.

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    • Table 1. National income, domestic absorption, and indonesian current account balance, 2010-2014 (billion rupiah)
    • Table 2.The gross national savings, gross national investments and Indonesian current account balance, 2010-2014 (billion rupiah)
    • Table 3. Private savings, private investments, tax, expenditures and current account balance in Indonesia in 2010-2014 (billion rupiahs)