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The Impacts of Trade Liberalisation and Technological Change on GDP Growth in Indonesia: A Meta Regression Analysis

Listed author(s):
  • Permani Risti

    ()

    (University of Adelaide)

Twelve selected studies investigating effects of trade liberalisation in Indonesia resulting in 25 point estimates are included in the Meta Regression Analysis to assess the growth-enhancing effects of trade liberalisation and technological change. Given high variation across studies, this study finds no robust evidence of the positive impacts of a tariff cut on economic growth rates. However, it finds robust evidence of the growth-enhancing effects of technological change. This study also finds that studies which are published assuming increasing return to scale, focusing on non-agricultural sectors, using pre-1997 databases and with more disaggregated sectors tend to report higher growth effects of trade liberalisation. Compared to results reported by Indonesian researchers, non-Indonesian academic researchers report lower growth effects of trade liberalisation. Overall, this study suggests that providing assistance to developing countries to improve their productivity might be a better approach to multilateral negotiations than putting pressures on these countries to remove their trade barriers.

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Article provided by De Gruyter in its journal Global Economy Journal.

Volume (Year): 11 (2011)
Issue (Month): 4 (December)
Pages: 1-30

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Handle: RePEc:bpj:glecon:v:11:y:2011:i:4:n:7
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