logo Kompas.id
New Sources of Growth
Iklan

New Sources of Growth

By
Ari Kuncoro
· 4 minutes read

Since the end of the commodity bonanza in 2012, Indonesia has been trying to maintain its momentum in economic growth. The Solow growth model suggests that an economy will achieve constant growth if capital and labor reach a balanced ratio, which is called the balanced growth path (BGP).

The BGP will become a trap if it is reached at low levels of per capita income. Adding to capital and/or labor as an additional factor of production will be redundant on its own due to the law of diminishing marginal returns (marginal benefits).

https://cdn-assetd.kompas.id/U8afTPY8YEvJEv3_pgtxhkiIlbw=/1024x670/filters:watermark(https://cdn-content.kompas.id/umum/kompas_main_logo.png,-16p,-13p,0)/https%3A%2F%2Fkompas.id%2Fwp-content%2Fuploads%2F2019%2F09%2F20190901lks06_1567336628.jpg
KOMPAS/LASTI KURNIA

Concertgoers raise their arms on Saturday (31/8/2019) during the 2019 Hodgepodge Superfest of the 2019 Fresh Mixed Music Festival at Allianz Ecopark in Ancol, Jakarta.

Editor:
naranasrullah
Share
Logo Kompas
Logo iosLogo android
Kantor Redaksi
Menara Kompas Lantai 5, Jalan Palmerah Selatan 21, Jakarta Pusat, DKI Jakarta, Indonesia, 10270.
+6221 5347 710
+6221 5347 720
+6221 5347 730
+6221 530 2200
Kantor Iklan
Menara Kompas Lantai 2, Jalan Palmerah Selatan 21, Jakarta Pusat, DKI Jakarta, Indonesia, 10270.
+6221 8062 6699
Layanan Pelanggan
Kompas Kring
+6221 2567 6000