1 AIT Asian Institute of Technology

An organizational model of economic growth:|bthe case of Indonesia

AuthorIrdamidris, Arif Arryman
Call NumberAIT SSPR no. IE-82-18
Subject(s)Indonesia--Economic conditions
NoteA special study submitted in partial fulfillment of the requirement for the degree of Master of Engineering, School of Engineering and Technology
PublisherAsian Institute of Technology
AbstractEconomic growth has traditionally been the center of attention of economists and economic enquiries. Many theories and concepts have been advanced and some models have also been developed to understand and explain the phenomenon of economic growth. Although some of the concepts and the models have in deed provided an insightful view of the phenomenon, these analysis were primarily don e on the basis of conventional economic methodology where statistical correlations and mathematical symbolizer are accepted as a basis t o analyze and to draw conclusion of the behavior under study . No systematic attempt has been made to identity the physical as well as information flow in the real organizational structure of the economy and , more important, to recognize the causal mechanisms that underlies the process o f economic growth. This study is an attempt to understand the process and the mechanisms of economic growth in a third world economy, in particular the Indonesia economy during 1960-1970 . Different from the conventional economic approaches, this study is based on the organizational aspect of economic growth. The focus is on understanding the functioning of a real economic system . The economic system here is viewed as a complex interaction between material , money and information. Its goal is to produce , distribute and consume goods and services. These complex interactions constitute the basic mechanism that works in the system under study which generate the observable phenomenon. The model of this study is not abstracted from the widely held economic postulates only but also from the real world process governing economic decisions. The analysis is concerned with economic factors only. The socio-political and cultural impacts a nd influences are acknowledged but are not specified explicitly. The main instrument of analysis of the study is a System Dynamics model which is constructed to abstract the real world organization underlying the Indonesian economic system. The validity of the model is argued on the basis of the soundness of its structure , the logical consistency of its assumption and the empirical validity or its behavior. The dynamic behavior of the model is studied with the help of computer simulation.
Year1982
TypeSpecial Study Project Report (SSPR)
SchoolSchool of Engineering and Technology
DepartmentDepartment of Industrial Systems Engineering (DISE)
Academic Program/FoSIndustrial Engineering (IE)
Chairperson(s)Saeed, Khalid
Examination Committee(s)Merkies, A.H.Q.M. ; Vokes, Richard W. A.
Scholarship Donor(s)The King (Royal Thai Government)
DegreeSpecial Studies Project Report (M. Eng.) - Asian Institute of Technology, 1982


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