The Effect of Tariffs on Imports : A Sector-Wise Analysis of Indonesia in 2001-2012

IDEC DP2 Series Volume 4 Issue 4 Page 1-8 published_at 2014-08
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Title ( eng )
The Effect of Tariffs on Imports : A Sector-Wise Analysis of Indonesia in 2001-2012
Creator
Romadhon Ardiansyah
Ito Yutaka
Yoshida Yuichiro
Source Title
IDEC DP2 Series
Volume 4
Issue 4
Start Page 1
End Page 8
Abstract
This paper examines the validity of the commonly accepted paradigm that tariffs discourage imports in Indonesia. Specifically, this paper investigates the effect of tariffs on imports by industry using six-digit sectoral trade data for the 2001-2012 period. We also measure the welfare cost of a marginal change in tariff rates in each industry using Harberger's approach. The results show that tariffs negatively affect only certain industries, such as chemical, stone/glass, and metals, but not other industries. The findings demonstrate that in these three industries, the welfare gain from a 1% decrease in the 2012 tariff rate amounts to approximately 3% of tariff revenue.
Keywords
Tariff
Indonesian import
Harberger's approach
NDC
Commerce [ 670 ]
Language
eng
Resource Type departmental bulletin paper
Publisher
広島大学大学院国際協力研究科
Date of Issued 2014-08
Publish Type Version of Record
Access Rights open access