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Fiscal effectiveness under regional economic integration: Indonesian agricultural performance case

Author

Listed:
  • Nasrudin
  • Bonar M. Sinaga
  • Muhammad Firdaus
  • Dedi Walujadi

    (Institute of Statistics (STIS), BPS-Statistics Indonesia, Jakarta
    Faculty of Economics and Management, Bogor Agricultural University
    Faculty of Economics and Management, Bogor Agricultural University
    BPS-Statistics Indonesia, Jakar)

Abstract

This paper investigates the effectiveness of fiscal policy in boosting agricultural sector performance and seeks the most effective policy in the presence of regional economic integration. It predicts the effectiveness of fiscal policy on the agricultural sector performance in four periods; the new order regime, the economic crisis, and pre and post China Free Trade Area (CAFTA). It also predicts the impact of fiscal policy on agricultural sector performance when CAFTA is fully implemented. It finds that fiscal policy is more effective in the optimum allocation of expenditures. It also finds that the agricultural sector can grow faster when the portion of capital expenditure increases.

Suggested Citation

  • Nasrudin & Bonar M. Sinaga & Muhammad Firdaus & Dedi Walujadi, 2013. "Fiscal effectiveness under regional economic integration: Indonesian agricultural performance case," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 5(1), pages 25-44, April.
    • Handle: RePEc:uii:journl:v:5:y:2013:i:1:p:25-44
    DOI: http://dx.doi.org/10.20885/ejem.vol5.iss1.art3
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    Citations

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    Cited by:

    1. Ogunlesi, Ayodeji, 2018. "Agricultural Productivity, Fiscal and Trade Policies Nexus in Sub-Saharan Africa: A Panel Structural Vector Error Correction Model Analysis," MPRA Paper 90202, University Library of Munich, Germany.

    More about this item

    Keywords

    Fiscal effectiveness; economic integration; agriculture;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F15 - International Economics - - Trade - - - Economic Integration
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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