The impacts of import tariff reduction on income growth and distribution in urban China*

Author(s):  
Mi Dai ◽  
Yifan Zhang
2019 ◽  
Vol 36 (2) ◽  
pp. 91
Author(s):  
Muhammad Emil Rahman ◽  
Bonar M. Sinaga ◽  
NFN Harianto ◽  
Sri Hery Susilowati

<strong>English</strong><br />Reduction toward elimination of import tariffs for all tradable products is a common modality of international trade agreements. Although it may be beneficial for reducing retail prices, import tariff reduction could create some negative impacts on farming, farmers’ welfare, and agro-processing industries. One of the most immediate impacts to anticipate is import tariff reduction on sugar. Accordingly, this study aims to formulate domestic support policy mix for neutralizing the negative impacts of sugar import tariff reduction on the Indonesian sugar industry. The study is conducted by developing an econometric policy simulation model for the Indonesian sugar industry, consisting of 21 structural equations and 15 identities, estimated by the Two-Stage Least Square method using time series data of 1995−2016. The result shows that sugar import tariff reduction, on one hand, is good because it reduces retail sugar price, but on the other hand, it is bad because it reduces sugar farmer price and domestic sugar production, increases sugar import, and reduces molasses export. As a consequence of the international agreements, the policy mix suggested for neutralizing the negative impacts of the sugar import tariff reduction should include increasing the planted area of sugar cane crop and construction of new sugar factories. <br /><br /><br /><strong>Indonesian</strong><br />Penurunan hingga penghapusan tarif impor untuk semua produk yang diperdagangkan adalah modalitas utama peningkatan akses pasar pada setiap kesepakatan perdagangan internasional. Walau bermanfaat menurunkan harga eceran, penurunan tarif impor dapat berdampak negatif terhadap kinerja usaha tani, kesejahteraan petani, dan industri pengolahan hasil pertanian. Salah satu yang perlu segera diantisipasi ialah penurunan tarif impor gula. Sejalan dengan itu, penelitian ini bertujuan untuk merumuskan bauran kebijakan dukungan domestik yang dapat menetralisasi dampak negatif penurunan tarif impor terhadap industri gula Indonesia. Penelitian dilakukan dengan membangun model ekononometrik simulasi kebijakan industri gula Indonesia yang terdiri dari 21 persamaan struktural dan 15 persamaan identitas yang diestimasi menggunakan metode <em>Two Stage Least Square</em> dengan data time series periode 1995 hingga 2016. Hasil analisis simulasi menunjukkan bahwa penurunan tarif impor gula, di satu sisi, berdampak baik karena dapat menurunkan harga gula eceran domestik, namun di sisi lain berdampak tidak baik karena menyebabkan penurunan harga gula petani dan menurunkan produksi gula domestik, meningkatkan impor gula, dan menurunkan ekspor molase. Jika sekiranya terpaksa dilakukan sebagai konsekuensi dari pelaksanaan kesepakatan kerja sama perdagangan internasional maka bauran kebijakan yang disarankan untuk menetralisasi dampak negatif penurunan tarif impor gula ialah peningkatan luas areal tanam tebu dan pembangunan pabrik gula baru.


2009 ◽  
Vol 57 (2) ◽  
pp. 261-295 ◽  
Author(s):  
Xin Meng ◽  
Xiaodong Gong ◽  
Youjuan Wang

2018 ◽  
Vol 7 (1) ◽  
pp. 13
Author(s):  
Mira Mira ◽  
Subhechanis Saptanto

Adapun tujuan dari penelitian ini adalah melihat pengaruh kebijakan perubahan tarif impor terhadap kinerja sektor kelautan dan perikanan. Data dari tabel Input dan Output dianalisis dengan menggunakan computable general equilibrium mode (CGE).  Simulasi dilakukan dengan Focus Group Discussion, pertama menggunakan tarif impor yang berlaku saat ini untuk produk perikanan yaitu sebesar 5%, kedua menggunakan tarif impor 10 persen jika tarjadi peningkatan tarif, dan ketiga menggunakan tarif 0 % dimana terjadi penurunan tarif impor karena kesepakatan kerjasama regional (Masyarakat Ekonomi Asean). Akibat pemberlakukan Masyarakat Ekonomi ASEAN (kebijakan penurunan tarif impor) terhadap kinerja makro sektor kelautan dan perikanan meningkatkan pendapatan pemerintah (GDP) sebesar 0.009%, dan peningkatan ekspor 0.040%. Kebijakan penurunan tarif impor akibat pemberlakukan MEA hanya berpengaruh negatif pada indikator neraca pembayaran, dimana penurunan tarif impor menyebabkan penurunan neraca pembayaran 0.070%. Kebijakan penurunan tarif impor  meningkatkan nilai tambah  produk TTC, patin, kerapu, dan garam, masing-masing sebesar 0.047%, 0.004%, 0.003%, dan 0.039%. Selain itu, kebijakan penurunan tarif impor akibat pemberlakukan MEA menyebabkan ekspor TTC naik sebesar 3.367%., sedangkan impor perikanan ikan kering dan ikan olahan naik secara signifikan menjadi 11.498% dan 11.010%.  Sebaliknya kebijakan peningkatan tarif impor (dalam hal ini menjadi sebesar 10%) maka membuat penurunan pada output ikan kering dan ikan olahan  impor masing-masing turun adalah sebesar 18.502% dan -17.873%. Kebijakan peningkatan tarif impor malah menyebakan peningkatan input produksi untuk ikan olahan dan ikan kering dimana masing-masing sebesar 32% dan 34,5%. Dampak kebijakan peningkatan tarif impor terhadap input produk olahan selaras dengan tujuan kebijakan pengenaan tarif impor untuk meningkatkan nilai tambah komoditas, maka diharapkan pemerintah masih mengenakan tarif impor terutama untuk komoditas yang memiliki daya saing.Title: Effect of Import Tariff Change Policy On Marine and Fisheries Sector PerformanceThis research was aimed to analyze the effect of import tariff change policy on marine and fisheries sector performance. Data was collected from Input and Output tables anddata analyzed using Computable General Equilibrium method (CGE). The simulation was conducted by Focus Group Discussion approach method, first simulation using current import tariff for fisheries product 5%, secondly using import tariff of 10% if there is increase ofimport tariff, and third using tariff 0% where there is decrease of import tariff because agreement of regional cooperation ASEAN Economic Community. As a result of the implementation of the ASEAN Economic Community (import tariff reduction policy) on the macro performance of marine and fisheries sector increased government revenue (GDP) by 0.009%, and 0.040% export increase. The import tariff reduction policy due to the imposition of the MEA only negatively affects the balance of payments indicator, where the decline in import tariffs leads to a 0.070% decrease in the balance of payments. The import tariff reduction policy increases the added value of TTC (tuna alike), catfish, grouper and salt products by 0.047%, 0.004%, 0.003% and 0.039% respectively. In addition, the import tariff reduction policy due to the introduction of the MEA caused TTC exports to increase by 3.367%, while dry fish and fish processing imports increased significantly to 11.498% and 11.010%. On the contrary, the policy to increase import tariff (in this case become 10%), the decrease of dried fish and imported fishes decreased by 18.502% and -17,873% respectively. The policy to increase import tariffs led to increased production inputs for processed fish and dried fish which were 32% and 34.5%, respectively. The impact of the policy on increasing import tariffs on refined product inputs is in line with the objective of import tariff policy to increase commodity-added value, it is expected that the government still impose import tariffs, especially for competitively priced commodities.


2020 ◽  
Vol 12 (5) ◽  
pp. 2017 ◽  
Author(s):  
Ling-Yun He ◽  
Geng Huang

In the context of anti-globalization and trade wars (especially between the US and China), China-ASEAN Free Trade Area (CAFTA) now plays a prominent role in many aspects. In this paper, we investigate how import tariff reduction in CAFTA affects the importers’ pollution emissions, using the firm-level data of Chinese manufacturing from 2002 to 2007. The mechanisms of import tariff reduction in CAFTA on pollution emissions are divided into technique, composition and scale effects. Our results indicate that import tariff reduction in CAFTA on final goods is conductive to importers’ pollution reduction, whereas that on intermediates significantly aggravates importers’ pollution emissions. Moreover, import tariff reduction has heterogeneous impacts on different types of enterprises in terms of industries, ownership, and region. Our results also find that the state-owned importers’ emissions can hardly be affected through technique, composition and scale effects.


2020 ◽  
Vol 12 (4) ◽  
pp. 623-645
Author(s):  
Wenbo Zhu ◽  
Yongfu Chen ◽  
Zhihao Zheng ◽  
Jing Zhao ◽  
Guojing Li ◽  
...  

PurposeChina has experienced a fast economic growth and shown a significant rise in income inequality in the past decades. During the same period, fluid milk consumption in urban areas has rapidly expanded. The objective of this paper is to analyze and simulate the influence of income distribution changes on fluid milk consumption of households in urban China.Design/methodology/approachThis study applies an inverse hyperbolic sine (IHS) double-hurdle model to modeling at-home fluid milk consumption of households across different income strata based on a sample of 11,861 urban households in five provinces in China, and simulating the impact of changing income distribution, including five income growth patterns, on fluid milk consumption of total households as well as specific household groups.FindingsThe fluid milk consumption in urban China will continue to increase, with the unconditional income elasticity being 0.334 for the full sample and 0.347, 0.335 and 0.162 for the low-, middle-, and high-income groups, respectively. The simulation results show an evidence that, compared with distribution-neutral and disparity-enlarging income growth patterns, a rising income equality would lead to a more significant increase in fluid milk consumption. And the inequality-reducing income growth pattern has a larger impact on fluid milk consumption of households with seniors and no children, as well as households having no local urban household registration (hukou).Practical implicationsThe government should strengthen the supply measures of fluid milk in urban areas, enlarge domestic dairy production, and diversify the sources of milk imports. It is also necessary to subsidize low-income families, especially households with seniors or households migrated from other areas without getting local urban hukou, which could simultaneously improve nutritional benefits and alleviate financial pressures.Originality/valueA simulation considering the evolution of income distribution as well as different household groups is conducted. Widely distributed data with a large sample size and detailed demographic information are used. The problems of zero consumption and non-normal distribution are addressed by the IHS double-hurdle model.


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