Damayanti, Maria Goreti Arie
Fakultas Ekonomi Dan Bisnis, Universitas Indonesia Jnl. Prof. Dr. Sumitro Djojohadikusumo, Depok 16424, Jawa Barat, Indonesia

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Journal : Jurnal Perencanaan Pembangunan

The Effect of Import Tariff Reduction on Unemployment in Indonesia: Regional Level Analysis Wulan Isfah Jamil; Arie Damayanti
Jurnal Perencanaan Pembangunan: The Indonesian Journal of Development Planning Vol. 2 No. 3 (2018): December 2018
Publisher : Ministry of National Development Planning Republic of Indonesia/Bappenas

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (907.64 KB) | DOI: 10.36574/jpp.v2i3.49

Abstract

The effect of import tariff reduction on unemployment can vary not only across sectors but also across regions, yet the empirical studies on regional analysis are still limited. This study investigates the effect of tariff reduction on unemployment in districts level in Indonesia spanning period 2000-2013. We follow the strategy of Topalova to construct regional tariff exposure in districts level. Our empirical analysis uses individual data approach to measure unemployment. By controlling the shifting in labor demand due to input tariff reduction, we find that import tariff reduction leads to an increase in unemployment and the increase is higher in district with larger employment share in net importer sectors.