The heterogeneous impacts of tariffs and NTM on total factor productivity of Indonesian firms
October 2, 2020·
·
0 min read
Krisna Gupta
Abstract
The Indonesian government has been working hard in engaging with the world market as average tariffs keep decreasing. However, it seems to follow the global trend, that is, relying on Non-Tariff Measures (NTM) to regulate its market instead to protect its industries. This paper inspects whether these measures actually hurt firms by limiting their access to better quality and cheaper foreign inputs. Building from Amiti and Konings (2007), I measure impact of trade policy shocks on firms’ Total Factor Productivity (TFP). I find that tariff and NTMs are hurting firms TFP significantly, and causing less employment.
Location
On-line
132 Lennox Crossing, Canberra, ACT 2600
Authors
Lecturer
My name is Krisna, some call me Imed. I am an advisor at the Indonesian National Economic Council. My research is about trade and investment policy and how it affects Indonesian firms. I use some structured equation such as GTAP model, but also do some empirics like gravity models.
I lecture at Universitas Indonesia. Additionally, I assume a senior fellow position at Center for Indonesian Policy Studies.
I contributed to several projects with Bank Indonesia, Bappenas, ADB, Prospera, and ERIA, among others. Occasional oped writer, typically at Kompas, Jakarta Post and East Asia Forum. Please see CV or contact me for more information.