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Indonesian Trade Liberalisation: Estimating The Gains

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  • Tubagus Feridhanusetyawan
  • Mari Pangestu

Abstract

Indonesia has undergone comprehensive trade liberalisation by participating in multilateral and regional trade arrangements and by conducting unilateral liberalisation. This paper evaluates the different paths of liberalisation the country has followed, and measures their effects on the economy. It considers the impact of several liberalisation scenarios: unilateral liberalisation; regional liberalisation through APEC (Asia Pacific Economic Cooperation) and AFTA (the ASEAN Free Trade Area); and multilateral trade liberalisation through the Uruguay Round (UR). The results show that the full implementation of UR and APEC liberalisation would greatly benefit Indonesia, and that unilateral liberalisation, carried out in conjunction with the UR commitment, would lead to large welfare gains. On the other hand, the creation of AFTA is expected to add little to welfare in Indonesia or in the other ASEAN member countries.

Suggested Citation

  • Tubagus Feridhanusetyawan & Mari Pangestu, 2003. "Indonesian Trade Liberalisation: Estimating The Gains," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 39(1), pages 51-74.
  • Handle: RePEc:taf:bindes:v:39:y:2003:i:1:p:51-74
    DOI: 10.1080/00074910302008
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    Cited by:

    1. repec:eco:journ1:2017-02-87 is not listed on IDEAS
    2. ANDO Mitsuyo, 2009. "Impacts of FTAs in East Asia: CGE Simulation Analysis," Discussion papers 09037, Research Institute of Economy, Trade and Industry (RIETI).
    3. David Vanzetti & Greg McGuire & Prabowo, 2005. "Trade Policy at the Crossroads: The Indonesian Story," Asia Pacific Economic Papers 347, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
    4. Acharya, Sanjaya, 2011. "Making unilateral trade liberalisation beneficial to the poor," Socio-Economic Planning Sciences, Elsevier, vol. 45(2), pages 60-71, June.

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