Macroeconomic Policies, Crises, and Long-term Growth in Indonesia, 1965-90

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World Bank Publications, Jan 1, 1994 - Business & Economics - 216 pages
Living Standards Measurement Studies Paper 104. The impact of children's health on their schooling success has been the focus of much research. While studies have concluded that there is a correlation between the health of the children and their performance at school, there is an increasing argument surrounding the limitations of the research. Many such studies measure schooling achievement through school attendance rates. This paper analyzes the failure of research to control for the fact that schooling and health are determined simultaneously. Such failure would lead to biased estimates. The study explores the possible biases and provides new evidence on the interrelationship between child health and schooling.


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Page xii - OECD Organization for Economic Cooperation and Development OPEC Organization of Petroleum Exporting Countries...
Page 87 - Because of the associated trauma, which arises because so many economic adjustments to a discrete change in the exchange rate are crowded into a relatively short period, currency devaluation has come to be regarded as a measure of last resort, with countless partial substitutes adopted before devaluation is finally undertaken . . . The reluctance of officials arises in large measure from the [fact that a] devaluation will disturb an implicit social contract among different segments of society —...
Page 7 - Agriculture, hunting, forestry and fishing; mining and quarrying; manufacturing; electricity, gas and water; construction; wholesale and retail trade, restaurants and hotels; transport, storage and communication; financing, insurance, real estate and business services; community, social and personal services; activities not adequately defined.
Page 80 - The term e is the nominal exchange rate (rupiahs per unit of foreign currency), p* is the foreign price level, and p is the domestic price level, all expressed in log forms.
Page 77 - Reserves grew 57 percent in 1974, and the inflation rate for that year was 41 percent. The Central Bank responded to this...
Page 74 - By abstracting from growth and assuming that the economy is initially at a long-run equilibrium, the production possibility frontier also becomes the consumption possibility frontier of the economy — that is, the net saving of this constant population is zero. The slope of the curve is the ratio of the price of tradables to the price of nontradables.
Page 126 - The average 1980-82 export-to-GNP ratio was 27 percent for Indonesia but only 14 percent for Mexico.
Page 15 - ... Given restrictions on the establishment of new banks these state banks continued to dominate the sector. Bank Indonesia and the state-owned banks supplied between 85 to 90 percent of all bank credit. Interest rates were controlled and credit was directly allocated to various banks and sectors. Indeed Bank Indonesia not only gave direct credits to certain enterprises, it also gave 'liquidity' or subsidized credits to the banking system, primarily state banks, in an effort to promote targeted activities.
Page 115 - ... not indicate that the August 1986 exchange rate was not overvalued. In order to have the 1986 nonoil export supply schedule in the same position within the familiar Marshallian price-quantity space as in 1979, a devaluation was warranted, particularly in light of the shrunken gap between output and input prices.
Page 84 - ... (see column d). Even though the nonoil exports were bringing in increasing amounts of foreign goods, the steady real appreciation of the exchange rate meant that the nonoil export industries were not being paid a greater number of baskets containing the mix of goods typically consumed by Indonesians. In terms of foreign purchasing power, the nonoil export industries increased their revenues by 32 percentage points between 1973 and 1978, but their revenues were unchanged if measured in terms of...

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