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Import competition and local labor markets: the case of Indonesia

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  • Fina Sri Agustina

Abstract

This paper analyzes the effects of import competition on Indonesian local labor markets in term of manufacturing employment share, non-manufacturing employment share, unemployment rate, and wages. A rapid increase of globalization has caused many countries including Indonesia experienced a significant increase in imports, which lead to a tougher import competition. Using data of imports and 430 districts in Indonesia in the period of 2007-2013, we found that import competition has negatively affected manufacturing employment share, non-manufacturing employment share, and wages. It also increased unemployment. In addition, the highest impact was mainly driven by imports of consumption goods

Suggested Citation

  • Fina Sri Agustina, 2018. "Import competition and local labor markets: the case of Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 10(2), pages 177-186.
    • Handle: RePEc:uii:journl:v:10:y:2018:i:2:p:177-186:id:10243
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    File URL: https://journal.uii.ac.id/JEP/article/view/10243/12440
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