High Capital Intensity in Indonesia Leads to Increased Current Account Deficit
The article explores how the type of industries and population demographics in Indonesia impact the country's current account. The researchers used a specific model to analyze this relationship. They found that industries with high capital intensity, meaning they require a lot of investment, lead to a larger current account deficit in Indonesia. Additionally, the demographic patterns in the country also play a significant role in determining the current account balance, particularly through their impact on savings and investment.