A case of Timor-Leste: From independence to instability or prosperity?

Wang, Di and Wang, Dong and Wang, Weiren (2012): A case of Timor-Leste: From independence to instability or prosperity?

Abstract

This paper analyzes the economic growth problems of Timor-Leste since its independence. As for a typical country whose economic growth is mostly relying on the petroleum revenues, its monotonous source of income seems to be the biggest obstacle. Therefore, this article mainly analyzed the possible solutions for how to sustain and manage the economic growth for Timor-Leste. As the Strategic Development Plan was issued in 2011 by Timor-Leste government, a high-quality public spending strategy was set to be the main method to reach a rapid economic growth. Following this strategy, this paper indicates three plausible solutions consist of improvement of infrastructure, coffee production and trades, and development of tourism. After comparing these three alternatives according to the criterion of effectiveness and timing, the conclusion of this paper goes to the improvement of infrastructure being the best solution for Timor-Leste.

• Item Type: MPRA Paper
• Language: English
• Keywords: Timor-Leste; GDP; Dutch Disease
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; H - Public Economics > H5 - National Government Expenditures and Related Policies > H51 - Government Expenditures and Health; I - Health, Education, and Welfare > I1 - Health > I18 - Government Policy ; Regulation ; Public Health; I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty

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