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All Journal Economic Journal of Emerging Markets
Sukoco Sukoco
Ministry of Trade Republic of Indonesia, Jakarta, Indonesia
Economics, Econometrics & Finance

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The impacts of liberalization and trade facilitation on economic performance, poverty and income inequality: An analytical study Sukoco Sukoco; Djoni Hartono; Arianto Patunru
Economic Journal of Emerging Markets Volume 12 Issue 1, 2020
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol12.iss1.art6

Abstract

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.
Co-Authors Arianto Patunru Djoni Hartono