Structural Adjustment, Agriculture, and Deforestation in the Sumatera Regional Economy.

TitleStructural Adjustment, Agriculture, and Deforestation in the Sumatera Regional Economy.
Publication TypeDiscussion Paper
AuthorsSan NN, Löfgren H, Robinson S
ContactAuthorasb@cgiar.org
Secondary TitleTMB Discussion Paper
PublisherInternational Food Policy Research Institute
Place PublishedWashington, D.C.
Year of Publication2000
Number52
Date PublishedMarch 2000
Publication LanguageEnglish
AbstractThe Asian financial crisis led to a major devaluation of the Indonesian exchange rate, macro instability, and the need for a “structural adjustment” program. The real devaluation affects prices throughout the economy and has a major impact on growth, production, deforestation, and income distribution in the Sumatera region. This paper uses computable general equilibrium (CGE) models —a national model and a regional model of Sumatera— that focus on agriculture to explore the impact of a real devaluation on the economy of Sumatera. The model incorporates commodity and factor market linkages between Sumatera, the rest of Indonesia, and the world (through commodity trade). Simulations are conducted for the short and medium run under alternative scenarios of macro adjustment.
KeywordsAgriculture, devaluation, economy, Sumatera
URLhttp://www.ifpri.org/divs/tmd/dp/papers/tmdp52.pdf
Citation Key628