DID A CAPITAL DEEPENING PARADOX AND SWITCHING POINTS OCCUR IN INDONESIA?
This paper discusses the empirical results of wage-profit rate schedules between 2000 and 2008 in Indonesia using input-output analysis. Using a mathematical approach, this paper has four main conclusions. First, there is a decrease in both wage share and profit margin in Indonesia. The decrease may...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Universitas Gadjah Mada
2017-05-01
|
| Series: | Journal of Indonesian Economy and Business |
| Subjects: | |
| Online Access: | https://jurnal.ugm.ac.id/jieb/article/view/27649/18195 |
| _version_ | 1819155772211200000 |
|---|---|
| author | Ardyanto Fitrady |
| author_facet | Ardyanto Fitrady |
| author_sort | Ardyanto Fitrady |
| collection | DOAJ |
| description | This paper discusses the empirical results of wage-profit rate schedules between 2000 and 2008 in Indonesia using input-output analysis. Using a mathematical approach, this paper has four main conclusions. First, there is a decrease in both wage share and profit margin in Indonesia. The decrease may be caused by the increase in relative prices of other inputs such as raw materials that generate inefficiency. Second, there is no proof of reverse capital deepening during the observed period and there is an indication that the capital was getting cheaper relative to other inputs during the period. Third, the capital-labor ratio tends to increase over time. Fourth, there is no proof of switching point and reswitching in technology during the period. However, this paper only provides us with an empirical result during the observed period. It is always possible to have a switching point or reswitching in the economy over a longer period. |
| first_indexed | 2024-12-22T15:42:17Z |
| format | Article |
| id | doaj.art-f7b94829bde04abc90f13316311357f7 |
| institution | Directory Open Access Journal |
| issn | 2085-8272 2338-5847 |
| language | English |
| last_indexed | 2024-12-22T15:42:17Z |
| publishDate | 2017-05-01 |
| publisher | Universitas Gadjah Mada |
| record_format | Article |
| series | Journal of Indonesian Economy and Business |
| spelling | doaj.art-f7b94829bde04abc90f13316311357f72022-12-21T18:21:07ZengUniversitas Gadjah MadaJournal of Indonesian Economy and Business2085-82722338-58472017-05-0132215115710.22146/jieb.27649DID A CAPITAL DEEPENING PARADOX AND SWITCHING POINTS OCCUR IN INDONESIA?Ardyanto Fitrady0Faculty of Economics and Business, Universitas Gadjah MadaThis paper discusses the empirical results of wage-profit rate schedules between 2000 and 2008 in Indonesia using input-output analysis. Using a mathematical approach, this paper has four main conclusions. First, there is a decrease in both wage share and profit margin in Indonesia. The decrease may be caused by the increase in relative prices of other inputs such as raw materials that generate inefficiency. Second, there is no proof of reverse capital deepening during the observed period and there is an indication that the capital was getting cheaper relative to other inputs during the period. Third, the capital-labor ratio tends to increase over time. Fourth, there is no proof of switching point and reswitching in technology during the period. However, this paper only provides us with an empirical result during the observed period. It is always possible to have a switching point or reswitching in the economy over a longer period.https://jurnal.ugm.ac.id/jieb/article/view/27649/18195wage-profit rate schedulesreverse capital deepeningswitching pointreswitching |
| spellingShingle | Ardyanto Fitrady DID A CAPITAL DEEPENING PARADOX AND SWITCHING POINTS OCCUR IN INDONESIA? Journal of Indonesian Economy and Business wage-profit rate schedules reverse capital deepening switching point reswitching |
| title | DID A CAPITAL DEEPENING PARADOX AND SWITCHING POINTS OCCUR IN INDONESIA? |
| title_full | DID A CAPITAL DEEPENING PARADOX AND SWITCHING POINTS OCCUR IN INDONESIA? |
| title_fullStr | DID A CAPITAL DEEPENING PARADOX AND SWITCHING POINTS OCCUR IN INDONESIA? |
| title_full_unstemmed | DID A CAPITAL DEEPENING PARADOX AND SWITCHING POINTS OCCUR IN INDONESIA? |
| title_short | DID A CAPITAL DEEPENING PARADOX AND SWITCHING POINTS OCCUR IN INDONESIA? |
| title_sort | did a capital deepening paradox and switching points occur in indonesia |
| topic | wage-profit rate schedules reverse capital deepening switching point reswitching |
| url | https://jurnal.ugm.ac.id/jieb/article/view/27649/18195 |
| work_keys_str_mv | AT ardyantofitrady didacapitaldeepeningparadoxandswitchingpointsoccurinindonesia |