Estimating external resource needs for economic development: case study: Indonesia

Abstract

The purpose of this study is to estimate foreign capital needs for Indonesia in 1985. For this purpose, we will use, as our basic starting point, the recently published 1975 official input-output table put out by the Department of Statistics of Indonesia. Several drawbacks to 'Gap Analysis' as originally developed by HB Chenery have been brought to light as a result of this study and it is hoped that the necessary adjustments contained herein will be seen as improvements. We also hope that the present work will prove helpful to practising politicans and civil servants who are concerned with economic planning particularly in developing countries. The mathematical representations used in this study are designed with a view to avoiding as many complications as possible, and certain of the more intrusive technical matters are given in the appendices. The most important elements of these are integrated in the sections on methodology and its application to the Indonesian economy in chapters VI and VII, respectively. I would like to thank Professor BP Philpott and Dr IG Bertram for their constructive criticisms and helpful suggestions during the writing of this thesis. I am also very indebted to all of the Indonesian Embassy staff in Wellington particularly Mr Sandjoto Pamungkas for their generous assistance in supplying the required data, but my greatest debt as always is to my wife for her patient support that she has given me throughout this study. The responsibility for the final product is ,of course, mine.