scholarly journals The Impact of Tariff Reduction on Poverty in Indonesia: Regional Level Analysis

2021 ◽  
Vol 2 (1) ◽  
pp. 58-73
Author(s):  
Rizka Aulia ◽  
Kangkook Lee

The study examines the effect of trade liberalization on poverty reduction across districts in Indonesia during the period from 2000 to 2016 using the fixed effect approach. Tariff exposure is used to measure trade liberalization, which is computed at the district level by combining information on sector composition of the economy in each district and tariff lines by sectors. This study also distinguishes between tariff exposure for output products and intermediate inputs. This produces a measure indicating how changes in exposure to tariff reductions in outputs and inputs vary by region over the period. Due to the available multi-district and 17-year dataset, the study includes a set of fixed effects: the district-fixed effects and the time-fixed effects, which controls for aggregate time trend. The results indicate that the impact of output and input tariff on regional poverty headcount index (P0) is different. Output tariff has a negative correlation with poverty, while input tariff has a positive correlation with poverty. This suggests that trade liberalization in input sectors could reduce poverty in Indonesia. It is also found that GRDP per capita, literacy rates, and road length are negatively associated with poverty. Also, the effect of reducing input tariffs on poverty reduction will be larger if the districts have higher GRDP per capita and higher literacy rates.

2018 ◽  
Vol 21 (2) ◽  
pp. 51-68 ◽  
Author(s):  
Kunofiwa Tsaurai

The study explored the impact of remittances on poverty in selected emerging markets. On the theoretical front, the optimistic view argued that remittances inflow into the labour exporting country reduces poverty whereas the pessimistic view proponents said that remittances dependence syndrome retards both economic growth and income per capita. Separately, using two measures of poverty [the poverty headcount ratio at US $1.90 and US $3.10 a day (% of population)] as dependent variables, the fixed effects approach produced results which supported the remittances led poverty reduction (optimistic) hypothesis whereas the pooled ordinary least squares (OLS) framework found that remittances inflow into the selected emerging markets led to an increase in poverty levels. The implication of the findings is that emerging markets should put in place policies that attract migrant remittances in order to reduce poverty levels. They should avoid over‑reliance on remittances as that might retard economic growth and income per capita.


Author(s):  
Sherine Fathy Mansour ◽  
Dalia Elsaid Abozaid

This study examines the impact of New Integrated Management Package (IMP) adoption on income and poverty among fodder farming household in Sahl El-Tina. The IMP such as Rate, time, and methods of nitrogen fertilization and other fertilization, Leaching requirements for some crops, Intercropping system, Use of suitable crop genotype/variety, Use of modern irrigation systems or modified systems to save water, date, rate and method of planting. The study aims mainly to improve the lives of small farmers through the level of dissemination and application of cultivation techniques forage crops tolerant to salinity through develop and disseminate technologies packages of forage production. And reducing their probability of falling below the poverty line. Therefore suggest that intensification of the investment on IMP dissemination is a reasonable policy instrument to raise incomes and reduce poverty among fodder farming household. It used instrumental variables (IV)-based estimator to estimate the Local Average Treatment Effect (LATE) of adoption of IMP on income and poverty reduction, using cross-sectional data of 200 farmers from Shal El-Tina. The findings reveal a robust positive and significant impact of IMP adoption on farm household income and welfare measured by per capita expenditure and poverty reduction. Specifically, the empirical results suggest that adoption of IMP raises household per capita expenditure and income by an average of 529.27$ and 1371$ in Shal El-Tina per cropping season respectively, thereby reducing their probability of falling below the poverty line. Therefore suggest that intensification of the investment on IMP dissemination is a reasonable policy instrument to raise incomes and reduce poverty among fodder farming household, although complementary measures are also needed. The incidence of poverty was higher among non-IMP adopters (55.2%) than IMP adopters (49.5%). In addition, both the depth and severity of poverty were also higher (20.85% and 15.42%) among non-adopters than the adopters (18.48% and 9.88%). All three poverty measures indicate that poverty was more prevalent and severe among non-adopters compared to adopters.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xueli Chen ◽  
Wanshu Ma ◽  
Vivian Valdmanis

PurposeThe purpose of this study is to examine the challenges involved in the trade-offs of labor productivity and per capita carbon dioxide (CO2) emission.Design/methodology/approachIn this research, we used a balanced dataset of 36 OECD countries and China between 1990 and 2018. We examined the relationship between labor productivity and per capita CO2 emission for OECD countries and China based on an Environmental Kuznets Curve (EKC) hypothesis. Further, the fixed effects model of estimation was employed to examine the impact of variables during the sample period and explore the relationship between predictor and outcome variables within an entity while controlling for all time-invariant differences.FindingsThis study confirmed the existence of the N-shape EKC hypothesis in 36 OECD countries and China. This implies that at the initial development stage, per capita CO2 emission increased with labor productivity; however, after reaching certain threshold, per capita CO2 emission began to fall with rising labor productivity. Then the per capita CO2 emission rises again when labor productivity continually increases.Originality/valueIn this study, we explored the dynamic association between labor productivity and per capita CO2 emissions for 36 OECD countries and China under the EKC framework from 1990 to 2018 by using the labor productivity and per capita CO2 emission as economic and environmental indicators of one country respectively. This study’s contribution showed the following: first, the empirical findings confirmed the N-shape relationship between labor productivity and per capita CO2 emissions for 36 OECD countries and China; second, the findings demonstrated that the association among the underlying variables by testing through the fixed effect model.


Author(s):  
Andrew Schmitz ◽  
James L. Seale ◽  
Claudine Chegini

Abstract Beef is a highly protected commodity in Japan and the number of studies on the impact of beef import tariff reduction has increased in light of the controversy over the Trans-Pacific Partnership Agreement (TPPA), in which the gains from freer trade in beef was a major point of discussion. We estimate that an 11% tariff reduction for Japanese imports of both Australian and U.S. beef can generate a net welfare gain to Japan of between US$92 million and US$915 million. These results are not overly sensitive to whether beef is treated as homogeneous or heterogeneous. A more significant determinant of welfare gains is the extent to which farm policy would be decoupled along with tariff reductions. Under a decoupled farm program, producer welfare can remain unchanged while the net gain from freer trade is identical to that of complete removal of price supports with no compensation to producers. Therefore, negotiators for U.S. and Australian beef interests should lobby for both lowered tariffs and a decoupling of domestic farm policy within the importing country. This seems to have been the case as Japan was willing to move toward a more decoupled farm program under the TPPA.


Author(s):  
Lesfran Sam Wanilo Agbahoungba

The main objective of this paper is to assess the impact of trade liberalization on employment in West African Economic and Monetary Union (WAEMU) through a gender approach. We apply generalized least squares (GLS) estimation techniques with both random and fixed effects on panel data covering the period of 2000-2017. Due to the lack of data, Guinea-Bissau is not part of our analysis. The results show that, while trade liberalization does not explain women’s employment patterns, it rather contributes in job destruction for men in the WAEMU. In conclusion, the impact of trade liberalization of employment is not gender neutral. Rather, it varies depending on the sex of people. In terms of policy implications, this study calls policy makers to setting up, better negotiating or renegotiating trade agreements and implementing trade policies that are more inclusive and beneficial particularly to the population. This could be done by taking into consideration women’s employment particularities in the union, enhancing productive capacities of men, reducing and eliminating inequalities related to people gender and sex.


2019 ◽  
Vol 34 (5) ◽  
pp. 1223-1228
Author(s):  
Liza Alili Sulejmani ◽  
Armend Ademi

Lately, there has been an increased interest among policy makers and scholars regarding the nexus between public debt and economic growth, with emphasizes on its effects on transition economies, particularly after the last global financial crisis. This paper tries to investigate the impact of public debt on economic growth in the European transition economies, for the time spin 2000-2016, by using Pooled OLS, Fixed effects, Random effects and Hausman – Taylor Instrumental variable (IV). In addition, results reveal that public debt although has positive effect on per capita growth still is statistically insignificant, whereas debt square has negative effect on per capita GDP growth. Further, gross savings, final consumption and fixed capital formation have positive effect on per capita growth, while government expenditures do not show significant impact. Moreover, such results highlight important implications for fiscal policymakers in these countries in order to foster the economic growth in the context of public debt level.


2019 ◽  
Vol 8 (1) ◽  
pp. 30-41
Author(s):  
Nurnas Kavila Elnung ◽  
Yozi Aulia Rahman

Economic development in East Java Province increases each year, can be seen from the Gross Regional Domestic Product (GRDP) Per Capita is increasing. The increase in GRDP Per Capita, cigarette consumption can increase so that the impact on tax receipts and an increase in life expectancy is low. Tax receipts made as the Province of East Java with revenue sharing fund of tobacco products excise highest. The purpose of this study was to analyze the influence of revenue sharing fund of tobacco products excise, betel leaves and tobacco expenditures and GRDP Per capita against life expectancy in East Java Province. Research methods used in this research is quantitative research methods with processing and data analysis technique used is Panel regression analysis with Fixed Effects Model (FEM). The results showed that only the GRDP Per Capita  affects life expectancy while revenue sharing fund of tobacco products excise and expenditure of tobacco and betel leaves don't effect on life expectancy in East Java province. Based on those results, so in an attempt to improve life expectancy in East Java province by improving the use of programme revenue sharing fund of tobacco products excise that can provide direct benefits to society such as examination health routine.


BMJ Open ◽  
2018 ◽  
Vol 8 (9) ◽  
pp. e021533
Author(s):  
Michael McLaughlin ◽  
Mark R Rank

ObjectivesIn order to improve health outcomes, the federal government allocates hundreds of billions of annual dollars to individual states in order to further the well-being of its citizens. This study examines the impact of such federal intergovernmental transfers on reducing state-level infant mortality rates.SettingAnnual data are collected from all 50 US states between 2004 and 2013.ParticipantsEntire US population under the age of 1 year between 2004 and 2013.Primary and secondary outcome measuresState-level infant mortality rate, neonatal mortality rate and postneonatal mortality rate.ResultsUsing a fixed effects regression model to control for unmeasurable differences between states, the impact of federal transfers on state-level infant mortality rates is estimated. After controlling for differences across states, increases in per capita federal transfers are significantly associated with lower infant, neonatal and postneonatal mortality rates. Holding all other variables constant, a $200 increase in the amount of federal transfers per capita would save one child’s life for every 10 000 live births.ConclusionsConsiderable debate exists regarding the role of federal transfers in improving the well-being of children and families. These findings indicate that increases in federal transfers are strongly associated with reductions in infant mortality rates. Such benefits should be carefully considered when state officials are deciding whether to accept or reject federal funds.


Economy ◽  
2021 ◽  
Vol 8 (2) ◽  
pp. 35-48
Author(s):  
Innocent U Duru

This study investigated the impact of trade liberalization on economic growth for Mexico, Indonesia, Nigeria and Turkey from 1986 to 2020. The Autoregressive Distributed Lag Bounds approach to cointegration and Toda and Yamamoto causality test were utilized for this study. The long-run results revealed that there is no relationship between trade liberalization and real gross domestic product per capita except for Mexico and in this situation, the significance level was at 10%. The results of the causality test showed that no causality was detected between real gross domestic product per capita and trade liberalization for Mexico and Indonesia. A bidirectional causality between real gross domestic product per capita and trade liberalization was found for Nigeria whereas a unidirectional causality from trade liberalization to real gross domestic product per capita was revealed for Turkey. The no causality results for Mexico and Indonesia means that the policy objectives of trade liberalization and economic growth can be pursued independently in both economies. In addition, the bidirectional causality detected for Nigeria suggests that the policy objectives of trade liberalization and economic growth can be pursued together in Nigeria. Furthermore, the unidirectional causality from trade liberalization to real gross domestic product per capita found for Turkey implies that she employs trade liberalization policies effectively for objectives of economic growth, thus trade liberalization causes economic growth.


2020 ◽  
Vol 63 (3) ◽  
pp. 160-176
Author(s):  
Katarzyna Świerczyńska ◽  
◽  
Filip Kaczmarek ◽  
Łukasz Kryszak ◽  
◽  
...  

The agricultural countries of sub-Saharan Africa remain the least economically advanced region of the world, with the relatively lowest quality of life. The agricultural sector plays a particularly important role in the economies of these countries. However, it is underdeveloped as a result of factors such as inadequate agricultural policy, institutional instability, chronic droughts, epidemics, deterioration of the environment, deteriorating infrastructure and insufficient investment in agricultural research in sub-Saharan Africa. The aim of the paper is to examine the impact of political stabilization on the economic growth in these countries. We were also inclined to determine what the interdependences were between political stability and factors important for agricultural activity for both agricultural and non-agricultural sub-Saharan counties in the 1995–2017 period. The methods used in this research included panel models with fixed effects, non-parametric tests and quantile regression. It was found that stabilizing the political situation and lowering the level of conflict risk contributed to the growth of GDP per capita in both agricultural and non-agricultural countries. However, in agricultural countries, it also influenced the modernization of agricultural production methods and a shift in the proportion of agricultural production in the total volume of imports and exports. Furthermore, it was found that political stability contributed to a greater extent to the improvement of GDP per capita in the lowest income countries.


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