IDEAS home Printed from https://ideas.repec.org/a/ids/ijepee/v11y2018i5p441-456.html
   My bibliography  Save this article

The relationship between trade liberalisation, poverty and inequality: the case of Indonesia

Author

Listed:
  • Muhammad Sofjan

Abstract

We provide a detailed investigation of the relationship between trade liberalisation, poverty and inequality in Indonesia by using provincial panel data from urban-rural regions. We use three models: an income model, a Gini model and a poverty model. The results were analysed using a simultaneous equations model and a data panel. After testing and analysing, it can be concluded that liberalisation of trade in Indonesia has proven to be able to lift most of the poor above the poverty line by creating job vacancies due to trade relations. However, trade is not able to reduce income inequality in Indonesia. Factors which significantly affect the level of inequality in Indonesia are the ratio of the number of workers in the non-governmental sector and the infrastructure, while the degree of trade openness and income growth is not significantly associated with inequality. Trade openness in Indonesia does not affect inequality.

Suggested Citation

  • Muhammad Sofjan, 2018. "The relationship between trade liberalisation, poverty and inequality: the case of Indonesia," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 11(5), pages 441-456.
    • Handle: RePEc:ids:ijepee:v:11:y:2018:i:5:p:441-456
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=94803
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijepee:v:11:y:2018:i:5:p:441-456. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=219 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.