IDEAS home Printed from https://ideas.repec.org/a/spr/minecn/v34y2021i1d10.1007_s13563-020-00226-3.html
   My bibliography  Save this article

An input - output approach in analyzing Indonesia’s mineral export policy

Author

Listed:
  • Rini Novrianti Sutardjo Tui

    (Akita University)

  • Tsuyoshi Adachi

    (Akita University)

Abstract

Indonesia is a country abundant with natural resources, mainly mineral ore commodities. As of 2017, the mining sector contributes an average of 10% towards Indonesia’s GDP and constitutes around 33.2% of the export value. Evidently, mining and mineral industries play a significant role in the economic growth of the country. The Indonesian government introduced an export ban policy as a subset of the current mining law in order to boost the country’s profits arising from its mineral wealth. The policy places a ban on raw mineral ore exports, except coal, copper, iron ore, lead, and zinc. It also states that such ores must be fully processed and refined before they can be exported. It becomes imperative to understand the responsiveness of the economy as a result of changes in the trade policy. Input-output analysis, a fundamental method of quantitative economics, is applied to determine the potential economic impact of the objectives set out by the export ban. The research assesses Indonesia’s input-output data for the year 2010, focusing on 13 mining-related sectors. Analysis of the input-output table of 26 sectors justifies the Government’s decision of placing a ban on export of raw mineral ore. Application of multipliers in the analysis indicates that exclusion of certain ores from the ban should perhaps be reconsidered. The results also suggest that metals will be a major component of mineral commodities, required for the sustainable economic growth of the country.

Suggested Citation

  • Rini Novrianti Sutardjo Tui & Tsuyoshi Adachi, 2021. "An input - output approach in analyzing Indonesia’s mineral export policy," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 34(1), pages 105-112, April.
    • Handle: RePEc:spr:minecn:v:34:y:2021:i:1:d:10.1007_s13563-020-00226-3
    DOI: 10.1007/s13563-020-00226-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13563-020-00226-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13563-020-00226-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jane Korinek & Jeonghoi Kim, 2010. "Export Restrictions on Strategic Raw Materials and Their Impact on Trade," OECD Trade Policy Papers 95, OECD Publishing.
    2. Mancheri, Nabeel A., 2015. "World trade in rare earths, Chinese export restrictions, and implications," Resources Policy, Elsevier, vol. 46(P2), pages 262-271.
    3. Makoto Sugino & Minoru Morita & Kazuyuki Iwata & Toshi. H. Arimura, 2017. "Multiplier impacts and emission reduction effects of Joint Crediting Mechanism: analysis with a Japanese and international disaggregated input–output table," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(3), pages 635-657, July.
    4. Behrens, Paul & Rodrigues, João F.D. & Brás, Tiago & Silva, Carlos, 2016. "Environmental, economic, and social impacts of feed-in tariffs: A Portuguese perspective 2000–2010," Applied Energy, Elsevier, vol. 173(C), pages 309-319.
    5. Rebecca Bess & Zoë O. Ambargis, 2011. "Input-Output Models for Impact Analysis:Suggestions for Practitioners Using RIMS II Multipliers," BEA Working Papers 0081, Bureau of Economic Analysis.
    6. Rose, Adam, 1995. "Input-output economics and computable general equilibrium models," Structural Change and Economic Dynamics, Elsevier, vol. 6(3), pages 295-304, August.
    7. Philip C. Abbott, 2012. "Export Restrictions as Stabilization Responses to Food Crisis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(2), pages 428-434.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Massie, Natanael Waraney Gerald & Mangunsong, Carlos, 2022. "Products as Network: An Empirical Approximation of the Manufacturing Production Network in Indonesia," MPRA Paper 114647, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wei, Weixian & Zhao, Yurong & Wang, Jianlin & Song, Malin, 2019. "The environmental benefits and economic impacts of Fit-in-Tariff in China," Renewable Energy, Elsevier, vol. 133(C), pages 401-410.
    2. Schmid Marc, 2019. "Kritische Rohstoffe – Die Achillesverse der USA im Wettstreit mit China," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 68(3), pages 309-330, December.
    3. Machacek, Erika & Fold, Niels, 2014. "Alternative value chains for rare earths: The Anglo-deposit developers," Resources Policy, Elsevier, vol. 42(C), pages 53-64.
    4. Christophe Gouel, 2016. "Trade Policy Coordination and Food Price Volatility," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(4), pages 1018-1037.
    5. Martelli, Emanuele & Freschini, Marco & Zatti, Matteo, 2020. "Optimization of renewable energy subsidy and carbon tax for multi energy systems using bilevel programming," Applied Energy, Elsevier, vol. 267(C).
    6. Götz, Linde & Goychuk, Kateryna & Glauben, Thomas & Meyers, William H., 2013. "Export Restrictions and Market Uncertainty: Evidence from the Analysis of Price Volatility in the Ukrainian Wheat Market," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150308, Agricultural and Applied Economics Association.
    7. Wang, Chengwei & Miao, Wang & Lu, Miaomiao, 2022. "Evolution of the Chinese industrial structure: A social network perspective," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    8. Lampiris, Georgios & Karelakis, Christos & Loizou, Efstratios, 2018. "Evaluation of the impacts of CAP policy measures on a local economy: The case of a Greek region," Land Use Policy, Elsevier, vol. 77(C), pages 745-751.
    9. Brooks, Douglas & Ferrarini, Benno & Go, Eugenia, 2013. "Bilateral Trade and Food Security," ADB Economics Working Paper Series 367, Asian Development Bank.
    10. Rui Marvão Pereira & Alfredo Marvão Pereira, 2019. "Financing a Renewable Energy Feed-in Tariff with a Tax on Carbon Dioxide Emissions: A Dynamic Multi-Sector General Equilibrium Analysis for Portugal," GEE Papers 0123, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jun 2019.
    11. Asif, Farazee M.A. & Rashid, Amir & Bianchi, Carmine & Nicolescu, Cornel M., 2015. "System dynamics models for decision making in product multiple lifecycles," Resources, Conservation & Recycling, Elsevier, vol. 101(C), pages 20-33.
    12. Luc SAVARD & Dorothée BOCCANFUSO & Antonio ESTACHE, 2009. "Distributional Impact of CC Policies in Senegal : A Macro-Micro CGE application," EcoMod2009 21500082, EcoMod.
    13. Christophe Gouel, 2014. "Food Price Volatility and Domestic Stabilization Policies in Developing Countries," NBER Chapters, in: The Economics of Food Price Volatility, pages 261-306, National Bureau of Economic Research, Inc.
    14. Donald F. Larson & Julian Lampietti & Christophe Gouel & Carlo Cafiero & John Roberts, 2014. "Food Security and Storage in the Middle East and North Africa," The World Bank Economic Review, World Bank, vol. 28(1), pages 48-73.
    15. Animesh Gain & Vahid Mojtahed & Claudio Biscaro & Stefano Balbi & Carlo Giupponi, 2015. "An integrated approach of flood risk assessment in the eastern part of Dhaka City," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 79(3), pages 1499-1530, December.
    16. Pothen, Frank, 2013. "The metal resources (METRO) model: A dynamic partial equilibrium model for metal markets applied to rare earth elements," ZEW Discussion Papers 13-112, ZEW - Leibniz Centre for European Economic Research.
    17. Charlier, Christophe & Guillou, Sarah, 2014. "Distortion effects of export quota policy: an analysis of the China-Raw Materials dispute," China Economic Review, Elsevier, vol. 31(C), pages 320-338.
    18. Rosamond L. Naylor, 2019. "Long-Run Uncertainties for U.S. Agriculture : Agricultural Symposium 2019," Economic Review, Federal Reserve Bank of Kansas City, issue Special I, pages 51-84, July.
    19. Negi, Digvijay S., 2022. "Global food price surge, in-kind transfers and household welfare: Evidence from India," World Development, Elsevier, vol. 158(C).
    20. McKay, Andy & Tarp, Finn, 2014. "Distributional impacts of the 2008 global food price spike in Vietnam," WIDER Working Paper Series 030, World Institute for Development Economic Research (UNU-WIDER).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:minecn:v:34:y:2021:i:1:d:10.1007_s13563-020-00226-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.