THE ENVIRONMENTAL IMPACT OF PREFERENTIAL TRADE AGREEMENTS: INPUT-OUTPUT ANALYSIS: CASE OF INDONESIA

Author(s):  
Dedi Abdul HADI ◽  
Toru MATSUMOTO
2021 ◽  
Vol 007 (01) ◽  
pp. 10-19
Author(s):  
Ari Tri Haryanto ◽  
Budy P. Resosudarmo

As the Indonesian government issued Omnibus Law to increase investment inflow to Indonesia, this paper tries to figure out investment in what sector that can generate the highest outcome in terms of the macro, micro, and environmental impacts, such that the Indonesian government should prioritize this sector as the investment targeted sector. Three sectors are considered: manufacturing, mining and quarrying, and electricity and gas. Using an I-O model and a microsimulation model, this paper examines the macro, micro, and environmental impacts of each investment scenario. The results reveal that in the short-run, investment in the electricity and gas sector generates the highest macro impacts, while investment in the mining and quarrying sector is better in reducing poverty and inequality, although it has a bigger environmental impact.


1980 ◽  
Vol 19 (3) ◽  
pp. 247-249
Author(s):  
A. R. Kemal

Input -output analysis is being widely used in developing countries for planning purposes. For a given level of final demand, input-output analysis allows us to project the required level of gross output to ensure consistency of plan. These projections are made on the assumption that the existing production structure is optimal and it implies that an increase in demand will be met through the expansion of domestic output even when it can be satisfied through an increase in imports. On the other hand, according to the semi-input-output method, we do not have to increase the output of international sectors in order to meet the increase in demand because the level and composition of these activities should be determined by comparative- cost considerations. These are the only national sectors in which output must increase in order to avoid shortage. The semi-input -output method has been such a useful and important contribution, yet, regrettably, its influence on the planning models had been rather limited.


Sign in / Sign up

Export Citation Format

Share Document