National Income, Capital Formation and Natural Resources?A Comment

Production and consumption activities in any economy have a direct impact on the environment. Although increased economic activity and population growth in developing countries continue to exert enormous pressure on their natural environments, the role of the environment is neglected in the estimation of national income. Such neglect at the macroeconomic level is at least in part, an important cause of environmental degradation in developing countries. Since the United Nations Conference on Environment and Development in 1992 at Rio and even as early as middle of the 1980s, a substantial literature had developed on methods to integrate the environment into the economic development process. The main assertion in this literature is that natural resources represent a form of capital that is analogous to the stock of manufactured capital. Sustainable income can be determined by allocating a portion of income to allow for the deprecation of natural capital [Ahmed, El Serafy, and Lutz (1989) and Solow (1992)]. Indonesia had average real GDP growth rates of more than five percent per year up to the early 1990s [World Bank (1994)]. But income inequality (measured by the Gini coefficient) has been high. Although inequality continues to be quite high, especially between rural and urban populations, Indonesia has been successful in poverty alleviation up to mid 1990s. In 1976 almost 40 percent of its population was below the poverty line, which in 1993 decreased to less than 14 percent [Todaro (1994)]. Income distributional consequences of economic growth would continue to be one of the main policy issues in Indonesia. This is due to its large population size, presence of different ethnic and religious groups, large diversity between rural and urban groups, variety of natural resources scattered over the country, huge distances and the effects of a far-flung archipelago [Akita, Lukman, and Yamada (1999)].

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Another Look at the Nexus Among Energy Consumption, Natural Resources, and Gross Capital Formation: Evidence from Pakistan

Natural Resources Research ◽

10.1007/s11053-019-09607-0 ◽

2019 ◽

Vol 29 (4) ◽

pp. 2801-2812 ◽

Cited By ~ 1

Author(s):

Syed Tauseef Hassan ◽

Enjun Xia ◽

Khalid Latif ◽

Jieping Huang ◽

Nazakat Ali

Keyword(s):

Energy Consumption ◽

Natural Resources ◽

Capital Formation

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Monoproductive Traits in Brazil’s Economic Past

The Americas A Quarterly Review of Latin American History ◽

10.2307/980580 ◽

2004 ◽

Vol 23 (2) ◽

pp. 130-141

Author(s):

Edward J. Rogers

Keyword(s):

Natural Resources ◽

Large Scale ◽

National Income ◽

Economic Structure ◽

World Market ◽

Colonial Period ◽

Colonial Policy ◽

Mother Country ◽

The World ◽

Foreign Commerce

During the first three hundred years of its existence, Brazil had no opportunity to develop its potential natural resources for the benefit of its inhabitants. Portugal, Brazil’s mother country, exploited the colony as a source of wealth for itself and did not administer it for the purpose of creating a sound economic structure for the good of Brazil. Its foreign commerce was a Crown monopoly until 1808. During this colonial period, easily exploited minerals and those crops which would command quick, lucrative profits on the world market, were stressed by Portuguese administrators. Thus, early in its history, the disastrous seeds of monoculture were sown in Brazil. These products were taken to Lisbon, which served as a jobbing center for the Empire, and from there they were distributed by vessel to other countries. Large-scale industry was discouraged by Portugal, and in some instances, actually forbidden. In this, Portugal was following the general colonial policy common to many European nations during that period. Characteristic of the Portuguese attitude was Queen Maria’s order in 1785 for the destruction of all industries and factories in Brazil that were not devoted to the production of sugar; a product from which Portugal at this time derived much of its national income. In return for the lucrative slave crops of sugar and cotton, the colony was forced to buy expensive finished goods from the mother country. The exchange profited Portugal greatly and strangled Brazil economically.

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E. ANALISIS PEMBENTUKAN MODAL TETAP BRUTO, INVESTASI ASING LANGSUNG, DAN EKSPOR TERHADAP PENDAPATAN NASIONAL PERKAPITA INDONESIA (DALAM MENGHINDARI MIDDLE INCOME TRAP)

Inovasi Manajemen dan Kebijakan Publik ◽

10.54980/imkp.v4i1.118 ◽

2021 ◽

Vol 4 (1) ◽

pp. 47

Author(s):

Mega Zahira Virtyani ◽

Dr. Ignatia Martha Hendrati,S.E.,M.E. ◽

Kiki Asmara,S.E.,MM

Keyword(s):

Foreign Direct Investment ◽

Direct Investment ◽

National Income ◽

Capital Formation ◽

Fixed Capital ◽

Middle Income ◽

Goods And Services ◽

Fixed Capital Formation ◽

Per Capita ◽

Middle Income Trap

Abstrak Pendapatan Nasional Per Kapita merupakan pendapatan rata-rata semua penduduk di suatu negara. Penelitian ini bertujuan untuk menganalisis pengaruh Pembentukan Modal Tetap Bruto, Investasi Asing Langsung, dan Ekspor Barang dan Jasa terhadap Pendapatan Nasional Per Kapita Indonesia dalam menghindari Middle Income Trap. Metode yang digunakan dalam penelitian ini adalah metode regresi linier berganda dengan menggunakan data Indonesia periode tahun 2008-2019. Hasil penelitian menunjukkan secara bersama-sama variabel Pembentukan Modal Tetap Bruto, Investasi Asing Langsung, dan Ekspor Barang dan Jasa berpengaruh secara signifikan. Tetapi secara parsial, hanya Pembentukan Modal Tetap Bruto yang memiliki tingkat signifikan. Sedangkan, Ekspor Barang dan Jasa dan Investasi Asing langsung tidak berpengaruh secara signifikan. Upaya yang dapat dilakukan dalam menghindari Middle Income Trap yaitu Pembentukan Modal Tetap Bruto, Investasi Asing Langsung, dan Ekspor Barang dan Jasa meningkat secara bersama-sama agar dapat memberikan nilai tambah produktivitas terhadap Pendapatan Nasional Indonesia. Kata Kunci : Pembentukan Modal Tetap Bruto, Investasi Asing Langsung, Ekspor, Pendapatan Nasional Per Kapita, Jebakan Pendapatan Menengah. Abstract National Income Per Capita is the average income of all residents in a country. The purposes of this research are determine the effect of Gross Fixed Capital Formation, Foreign Direct Investment, and Exports of Goods and Services on Indonesia's National Income Per Capita in avoiding Middle Income Trap. The method that used in this research is multiple linear regression method using Indonesian data for 2008-2019. The results of this research show that the variables of Gross Fixed Capital Formation, Foreign Direct Investment, and Exports of Goods and Services have a significant effect at the same time. Partially, only Gross Fixed Capital Formation has a significant level. Meanwhile, Exports of Goods and Services and Foreign Direct Investment do not have a significant effect. The efforts that can be made to avoid Middle Income Traps, are Gross Fixed Capital Formation, Exports of Goods and Services, and Foreign Direct Investment can be increase at the same time to give extra value for the productivity to Indonesia's National Income. Key Word : Gross Fixed Capital Formation, Foreign Diret Investment, Gross National Income Per Capita, Middle Incom Trap.

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