The impacts of liberalization and trade facilitation on economic performance, poverty and income inequality: An analytical study

This study examines the impacts of import duty and trade transaction cost reductions on economic performance, poverty, and income distribution inequality, through the top-down computable general equilibrium approach. Findings/Originality: It reveals that reducing import duty in agricultural decreas...

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Main Authors: Sukoco Sukoco, Djoni Hartono, Arianto Patunru
Format: Article
Language:English
Published: Universitas Islam Indonesia 2020-04-01
Series:Economic Journal of Emerging Markets
Subjects:
Online Access:http://journal.uii.ac.id/JEP/article/view/13810
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author Sukoco Sukoco
Djoni Hartono
Arianto Patunru
author_facet Sukoco Sukoco
Djoni Hartono
Arianto Patunru
author_sort Sukoco Sukoco
collection DOAJ
description This study examines the impacts of import duty and trade transaction cost reductions on economic performance, poverty, and income distribution inequality, through the top-down computable general equilibrium approach. Findings/Originality: It reveals that reducing import duty in agricultural decreases urban poverty but increases the poverty incidence at the rural and national levels. Reducing import duty in agricultural industry lowers urban and national poverty without affecting rural poverty. Meanwhile, the reductions of both import duty and transaction costs bring down the poverty incidence at all levels – urban, rural, and national. The inequality in rural and national income distribution increased due to the cuttings of import duty in agricultural and agricultural industry. However, it declined due to the reduction of transaction costs, and the combined transaction cost with import duty in agricultural or agricultural industry.
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spelling doaj.art-6cab29b7a0c9481c89a24abb4cbc952f2022-12-22T02:25:45ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2020-04-0112110.20885/ejem.vol12.iss1.art69515The impacts of liberalization and trade facilitation on economic performance, poverty and income inequality: An analytical studySukoco Sukoco0Djoni Hartono1Arianto Patunru2Ministry of Trade Republic of Indonesia, Jakarta, IndonesiaDepartment of Economics, Universitas Indonesia, Jakarta, IndonesiaCrawford School of Public Policy, Australian National University, Canberra, Australia This study examines the impacts of import duty and trade transaction cost reductions on economic performance, poverty, and income distribution inequality, through the top-down computable general equilibrium approach. Findings/Originality: It reveals that reducing import duty in agricultural decreases urban poverty but increases the poverty incidence at the rural and national levels. Reducing import duty in agricultural industry lowers urban and national poverty without affecting rural poverty. Meanwhile, the reductions of both import duty and transaction costs bring down the poverty incidence at all levels – urban, rural, and national. The inequality in rural and national income distribution increased due to the cuttings of import duty in agricultural and agricultural industry. However, it declined due to the reduction of transaction costs, and the combined transaction cost with import duty in agricultural or agricultural industry. http://journal.uii.ac.id/JEP/article/view/13810top-downComputable General Equilibrium (CGE) Modeltrade policy
spellingShingle Sukoco Sukoco
Djoni Hartono
Arianto Patunru
The impacts of liberalization and trade facilitation on economic performance, poverty and income inequality: An analytical study
Economic Journal of Emerging Markets
top-down
Computable General Equilibrium (CGE) Model
trade policy
title The impacts of liberalization and trade facilitation on economic performance, poverty and income inequality: An analytical study
title_full The impacts of liberalization and trade facilitation on economic performance, poverty and income inequality: An analytical study
title_fullStr The impacts of liberalization and trade facilitation on economic performance, poverty and income inequality: An analytical study
title_full_unstemmed The impacts of liberalization and trade facilitation on economic performance, poverty and income inequality: An analytical study
title_short The impacts of liberalization and trade facilitation on economic performance, poverty and income inequality: An analytical study
title_sort impacts of liberalization and trade facilitation on economic performance poverty and income inequality an analytical study
topic top-down
Computable General Equilibrium (CGE) Model
trade policy
url http://journal.uii.ac.id/JEP/article/view/13810
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