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Trade Liberalisation and Employment in Indonesia

In: Economic and Political Reform in Developing Countries

Author

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  • Barbara Evers

Abstract

In recent years Indonesia has been viewed as a model of successful macroeconomic adjustment. As a petroleum exporter, the economy was protected to a large extent from the unfavourable economic shocks and the subsequent decline in world trade which hurt many developing countries in the late 1970s and early 1980s. Following the fall in oil prices in the early 1980s, the economy’s dependence on oil was substantially reduced largely through the introduction of a number of stabilisation and adjustment reforms aimed at diversifying the manufacturing sector and to some extent ‘liberalising’2 conditions of trade and production in the manufacturing sector. The agility with which the economy adjusted during the mid 1980s has been remarkable. Manufacturing exports and output growth have been vibrant and, over the adjustment period (from 1985 onwards), there has been some evidence of an overall reduction in poverty (Thorbecke, 1992).

Suggested Citation

  • Barbara Evers, 1995. "Trade Liberalisation and Employment in Indonesia," Palgrave Macmillan Books, in: Oliver Morrissey & Frances Stewart (ed.), Economic and Political Reform in Developing Countries, chapter 8, pages 172-199, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-13460-1_9
    DOI: 10.1007/978-1-349-13460-1_9
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