OIDA International Journal of Sustainable Development
Open-access peer-reviewed journal
The Impact Of Flight Rates on Economic Growth in Indonesia
Maulana Irwansyah 1, Muhammad Zilal Hamzah 2, Eleonora Sofilda 3
1Public Policy Studies, Faculty of Economics and Business, Universitas Trisakti, Indonesia.
2,3 Public Policy Studies, Faculty of Economics and Business, Universitas Trisakti, Indonesia.
Volume 15, Issue 12, Pg. 11-24, 2022.
Abstract:
The contribution of the Aviation Industry in Indonesia to economic sectors has increased from year to year, although its contribution is not as large as other industries. The aviation industry’s contribution to Indonesia’s economic growth recorded from 2013-2019 was 0.6% – 0.74%. This increase means that the aviation industry has good prospects as a connectivity medium, especially for Indonesia. Therefore, the performance sustainability of the sector needs to be a focus for the government, especially the market structure of the sector because it will have implications for fares fluctuations. For example, the phenomenon of fare changes that occurred in 2019 affected the aviation industry. This research has a purpose to (i). Assess and analyze how the impact of airfare on economic growth in Indonesia; (ii). To study and analyze how the impact of the number of flights on economic growth in Indonesia; (iii). Reviewing and assessing the impact of foreign debt on economic growth in Indonesia; and (iv). To analyze the impact of the inflation rate on economic growth in Indonesia. This study uses Computable General Equilibrium (CGE) to answer the existing problem formulation. The main finding of this study is that airfares have a negative impact on Indonesia’s economic growth through decreasing demand for aviation services. This study recommends that the government needs to maintain the amount of faress in the market to maintain purchasing power and also Indonesia’s economic growth in addition to maintaining macroeconomic variable stability.
Keywords: Fares, Aviation, Economic Growth, CGE, Business Competition, Macroeconomics
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Analyzing Sustainable Development in OPEC countries vs OECD countries: Comparative study by TOPSIS methodology
Yadollah Dadgar[1] , Rohollah Nazari [2]
Professor of Beheshty University, Iran, Visiting Professor Carleton University, Canada
PhD candidate, Ferdowsi University, Iran.
Volume 15, Issue 12, pg. 25-34, 2022.
Abstract: Sustainable Development, SD, is a compatible compound of economic, social and environmental dimensions for achieving admissible welfare for current citizens without hurting welfare of future generations. Nowadays, achieving to adequate level of sustainable development, SD, is considered as an inevitable necessity in different countries. Unlike traditional development, Sustainable Development maintains on a comprehensive concept of development which covers social justice, environmental considerations, and minimum economic well- being for all citizens. Thus, it is the crossroad of society, economy, and environment altogether. Providing necessary conditions for Sustainable Development is a mission of public policy for both developed and less developed countries. Hence, this article by using different social, economic and environmental indexes alongside TOPSIS methodology, is analyzing the situation of OECD, for achieving Sustainable Development on one hand and that of OPEC countries on the other. The findings of this article indicate that: firstly the level of SD is not unique for both OECD on one hand OPEC countries on the other, and there are some distinctive differences among both categories of selected countries. Secondly, and as SD is concerned, there is a huge gap between developed and less developed countries.
Keywords: OPEC and OECD, Political Economy, Sustainable Development, TOPSIS Methodology
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