IDEAS home Printed from https://ideas.repec.org/a/taf/bindes/v59y2023i2p269-300.html
   My bibliography  Save this article

The Heterogeneous Impact of Tariffs and Ntms on Total Factor Productivity for Indonesian Firms

Author

Listed:
  • Krisna Gupta

Abstract

The Indonesian government has been working hard to engage with the world market as tariffs continue to decrease. However, the government seems to be following the global trend of relying on non-tariff measures (NTMs) to regulate the Indonesian market and protect the country’s industries. This paper assesses whether these measures hurt firms by limiting their access to better quality and cheaper foreign inputs. It builds on the findings of Amiti and Konings (2007) by assessing the impact of trade policy shocks on firms’ total factor productivity (TFP). It finds that tariffs and NTMs hurt firms’ TFP significantly and reduce employment. The impact is less severe for bigger firms, confirming the heterogeneous effect of trade policy. The results suggest unintended consequences of protectionism in the Indonesian market. Moreover, as the country seeks to boost foreign investment, more protectionism may be used to keep mark-ups in the domestic market high as an incentive.

Suggested Citation

  • Krisna Gupta, 2023. "The Heterogeneous Impact of Tariffs and Ntms on Total Factor Productivity for Indonesian Firms," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 59(2), pages 269-300, May.
    • Handle: RePEc:taf:bindes:v:59:y:2023:i:2:p:269-300
    DOI: 10.1080/00074918.2021.2016613
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00074918.2021.2016613
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00074918.2021.2016613?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Masagus M. Ridhwan & Dionisius A. Narjoko & Krisna Gupta, 2023. "The Assessment Of Competition, Markup, And Price Determination In The Indonesian Food And Beverage Industry," Working Papers WP/03/2023, Bank Indonesia.

    More about this item

    Statistics

    Access and download statistics

    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:taf:bindes:v:59:y:2023:i:2:p:269-300. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CBIE20 .

    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.