MODEL PERMINTAAN AGREGAT INDONESIA SEBAGAI NEGARA PRICE-TAKER: 1969-1996

Adhityarahman,Shiddieq ( Drs. A. Budi Purnomo Brodjonegoro, M.A ), Drs.A.Budi Purnomo Brodjonegoro,M.A

1999 | Skripsi | S1 Economics

The development of modern macroeconomics theory has reached its complexity with the rise of price-taking countries' economy. Price-taking countries are phenomenons of the 20th century, and researches regarding such countries are still rare to found. One who developed macroeconomics theory for the price-taking countries is Paul De Grauwe, whose aggregate demand model is adopted in this research. The model explained that in the aggregate demand of a price-taking country, the price of domestic goods depends upon the price of import goods. This is to consider that the country still has a lack of resources to produce well qualified domestic goods.

In this research, Indonesia is used as a study-case, since the country is still categorized as a price-taking country and a potential market for goods' producers around the world. This can be observed from the large quantity of imports in secondary goods, and the dependence of domestic goods upon the import goods. The non-oil trade balance of Indonesia is always deficit, meaning that non-oil real import is greater in amount than non-oil real export. The simultaneous test with Ordinary Least Squares method toward the Paul De Grauwe aggregate demand model using the data of aggregate

Demand components of Indonesia 1969-1996 verifies that the model can be implemented in order to explain a more down-to-earth view of the Indonesian aggregate demand. The Standard Error of Regression from the iterations made shows a decreasing amount, indicating that the more iterations are made, the more the model can illustrate the aggregate demand of Indonesia.

With such result, assumptions that are used by the government in making the macroeconomics policies are found less realistic. As long as the price of domestic goods still depends upon the price of import goods, any monetary or fiscal policies implemented will be ineffective to shift the aggregate demand curve. The remedy is not just from the economical policies.

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Kata Kunci : model permintaan,model permintaan agregat,price taker