INCREMENTAL CAPITAL OUTPUT RATIO: BAROMETER EFISIENSI PEREKONOMIAN NASIONAL
Muhamad Farid Mahmud
Gunadarma University
Indonesia
Gunadarma University
Indonesia
Abstract
ICOR is used for determining ammount of investments which is required to achieve
target of national outputs. The value of the ratio is also representing efficiency of
economic of a country. The higher the value of the ratio the less efficient the country’s
economic is, indicating that the goverrment spending has not generated optimal
outputs. In other words, the country’s productivity is relatively low. Ordinary Least
Square method were used to analyze time series data on real interets rates and others
bebas. variabels infulencing ICOR. Results of the study indicated that interest rate as
an influencing variabel towards ICOR cannot be used as a solely policy instrument to
increase investement. In optimizing the nation’s output, a non conventional monetary
policy, balanced infrastructure development, and poverty elimination programs seem
to be required accordingly.
target of national outputs. The value of the ratio is also representing efficiency of
economic of a country. The higher the value of the ratio the less efficient the country’s
economic is, indicating that the goverrment spending has not generated optimal
outputs. In other words, the country’s productivity is relatively low. Ordinary Least
Square method were used to analyze time series data on real interets rates and others
bebas. variabels infulencing ICOR. Results of the study indicated that interest rate as
an influencing variabel towards ICOR cannot be used as a solely policy instrument to
increase investement. In optimizing the nation’s output, a non conventional monetary
policy, balanced infrastructure development, and poverty elimination programs seem
to be required accordingly.
