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Ideas, Interests and Oil Prices: The Political Economy of Trade Reform During Soeharto's Indonesia

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  • M. Chatib Basri
  • Hal Hill

Abstract

Indonesia since the late 1960s constitutes an excellent case study in the political economy of trade protection. There have been major changes in the overall policy regime, from liberalism to significant intervention, and back towards liberalism. There have been large, though declining, inter-industry variations in effective protection. There has been a lively domestic debate, much of it dominated by non-economists. Many actors at home and abroad have a stake in that debate. And, since the 1980s at least, trade policy interventions have been reasonably well documented and quantified. In this paper, we show how quantitative analysis may be employed to shed light on changes in the trade policy regime over time. We also examine the principal actors with an interest in, and influence over, trade policy, delineating where possible how their influence translated into the policy arena. Finally, we speculate on whether the framework developed in this paper is applicable to the very different circumstances prevailing in the post-Soeharto era. Copyright Blackwell Publishing Ltd 2004.

Suggested Citation

  • M. Chatib Basri & Hal Hill, 2004. "Ideas, Interests and Oil Prices: The Political Economy of Trade Reform During Soeharto's Indonesia," The World Economy, Wiley Blackwell, vol. 27(5), pages 633-655, May.
  • Handle: RePEc:bla:worlde:v:27:y:2004:i:5:p:633-655
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    Citations

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    Cited by:

    1. Hal Hill, 2013. "The Political Economy of Policy Reform: Insights from Southeast Asia," Asian Development Review, MIT Press, vol. 30(1), pages 108-130, March.
    2. David Vanzetti & Greg McGuire, 2005. "Trade Policy At The Crossroads – The Indonesian Story," UNCTAD Blue Series Papers 28, United Nations Conference on Trade and Development.
    3. Chiu, Yi-Bin & Lee, Chien-Chiang & Sun, Chia-Hung, 2010. "The U.S. trade imbalance and real exchange rate: An application of the heterogeneous panel cointegration method," Economic Modelling, Elsevier, vol. 27(3), pages 705-716, May.
    4. Tatyana Chesnokova & Jesmin Rupa & Nicholas Sim, 2015. "Export Exposure and Gender Specific Work Participation in Indonesia," School of Economics Working Papers 2015-16, University of Adelaide, School of Economics.
    5. Krisztina Kis-Katos & Robert Sparrow, 2011. "Child Labor and Trade Liberalization in Indonesia," Journal of Human Resources, University of Wisconsin Press, vol. 46(4), pages 722-749.
    6. Kelly Bird & Hal Hill & Sandy Cuthbertson, 2008. "Making Trade Policy in a New Democracy after a Deep Crisis: Indonesia," The World Economy, Wiley Blackwell, vol. 31(7), pages 947-968, July.
    7. Rudy Rahmaddi & Masaru Ichihashi, 2011. "How Do Foreign and Domestic Demand Affect Exports Performance? An Econometric Investigation of Indonesia's Exports," IDEC DP2 Series 1-4, Hiroshima University, Graduate School for International Development and Cooperation (IDEC), revised Jan 2012.
    8. Kis-Katos, Krisztina & Sparrow, Robert, 2009. "Child work and schooling under trade liberalization in Indonesia," Proceedings of the German Development Economics Conference, Frankfurt a.M. 2009 17, Verein für Socialpolitik, Research Committee Development Economics.
    9. Hadi Soesastro & M. Chatib Basri, 2005. "The Political Economy of Trade Policy in Indonesia," Trade Working Papers 22033, East Asian Bureau of Economic Research.
    10. Haryo Aswicahyono & Hal Hill, 2015. "Is Indonesia Trapped in the Middle?," Discussion Paper Series 31, Department of International Economic Policy, University of Freiburg, revised Aug 2015.
    11. Aswicahyono, Haryo & Narjok, Dionisius, 2011. "Indonesian Industrialization," WIDER Working Paper Series 053, World Institute for Development Economic Research (UNU-WIDER).
    12. M. Chatib Basri & Hal Hill, 2008. "Indonesia - Trade Policy Review 2007," The World Economy, Wiley Blackwell, vol. 31(11), pages 1393-1408, November.
    13. Yi-Bin Chiu & Chia-Hung Sun, 2009. "Economic interdependence and bilateral trade imbalance across the Taiwan Strait," Journal of Economic Studies, Emerald Group Publishing, vol. 36(4), pages 411-432, September.
    14. Permani Risti, 2011. "The Impacts of Trade Liberalisation and Technological Change on GDP Growth in Indonesia: A Meta Regression Analysis," Global Economy Journal, De Gruyter, vol. 11(4), pages 1-30, December.
    15. Ahmad Helmy Fuady, 2015. "Pragmatism and Nationalism, Industrialization Policy in Indonesia and Nigeria," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 61, pages 21-40, August.

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