Resource Drain in Indonesia

The aim of aid is clear which is to help the developing countries to reduce its poverty level through economic development channel. But, the fact is a contradictory one, aid in the form of debt for the developing countries does not function as a savior, the debts are more like a burden to the developing countries. This book tries to prove the fact that external debts do not serve to the benefit for the developing countries but it is merely a tool for draining resources in developing countries. The proof will be explained through the case of Indonesia and Japan, the first one represents the developing countries as the debtor while the latter represents developed countries as the creditor. The series of data to uncover the fact will be analyzed through Vector Auto Regressive Model, Cointegration and Error Correction Model to which it will explain the relationship between Indonesia trade balance with Japan; the number of Indonesian external debts payments; and the GDP of Japan.

Autorentext

Fithra Faisal Hastiadi obtained his BA in Economics from the University of Indonesia. During his BA, he worked as a teaching assistant in the University of Indonesia at the Department of Economics before he continued his study to Keio University, Japan, from where he got his MA degree. He then earned his PhD degree from Waseda University, Japan.