Abstract

Indonesian government has been working hard in engaging with the world market as average tariff keeps on decreasing. However, it seems to follow the global trend, that is, relying on Non-Tariff Measures (NTM) to regulate its market instead to protect its industries. This paper inspects whether these measures are hurt firms by limiting their access to better quality and cheaper foreign inputs. This paper builds from Amiti and Konings (2007), inspecting the impact of trade policy shocks to firm’s Total Factor Productivity (TFP). This study finds that tariff and NTMs are hurting firms TFP significantly and causing less employment. The impact is less severe for bigger firms, confirming heterogenous effect of trade policy. The result suggests unintended consequences of protectionism in Indonesian market. Moreover, as the country is looking to boost foreign investment, more protectionism may be regulated to keep mark-up in the domestic market high as an incentive.

摘要

随着平均关税的不断下降，印尼政府一直在努力与世界市场打交道。然而，它似乎在顺应全球趋势，即依靠非关税措施（NTM）来规范其市场，而不是保护其产业。本文通过限制企业获得更好质量和更便宜的外国投入来检验这些措施是否会损害企业。本文基于 Amiti 和 Konings (2007)，考察了贸易政策冲击对企业全要素生产率 (TFP) 的影响。本研究发现关税和非关税措施严重损害了企业的全要素生产率并导致就业减少。对大公司的影响不那么严重，证实了贸易政策的异质效应。结果表明，印尼市场的保护主义产生了意想不到的后果。而且，