1 AIT Asian Institute of Technology

Effect of Asean trade liberalization on national output and employee income of Indonesia

AuthorAmri Saleh, Zulkarnain
Call NumberAIT Thesis no.IE-81-01
Subject(s)Indonesia--Commerce
Commerce--Economic aspects
NoteA thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering. School of Engineering and Technology
PublisherAsian Institute of Technology
AbstractRecently, great attention has been paid to trade liberalization among ASEAN countries. It has been argued by supporters of this move that it will lead to greater economic efficiency among the ASEAN nations. Nevertheless, others have expressed the view that some of the lesser developed ASEAN nations may suffer adverse consequences due to trade liberalization. Thus, the main objectives of this study are twofold . Firstly, it is to examine whether Indonesia would benefit or not due to trade liberalization among ASEAN countries starting with a ten-percent tariff reduction across the board. Secondly, based on this result, the changes of Indonesia ' s national output and employee income are determined. The price elasticity concept in conjunction with the reciprocal agreement on tariff reduction is used to derive the variation in the trading patterns due to the policies of trade liberalization. The price elasticities of demand of the commodities is the focal point of this analysis and these are estimated using 1st and 2nd degree Polynomial lag models. In order to obtain the changes of national output and employee income, the modified Leontief Inverse table of Indonesia has been developed. The final result proves that Indonesia will have a surplus in Trade with ASEAN due to trade liberalization and that both national output and employee income will increase.
Year1981
TypeThesis
SchoolSchool of Engineering and Technology
DepartmentDepartment of Industrial Systems Engineering (DISE)
Academic Program/FoSIndustrial Engineering (IE)
Chairperson(s)Pakorn Adulbhan
Examination Committee(s)Tang, John C.S. ; Tabucanon, Mario T.
Scholarship Donor(s)Government of Canada
DegreeThesis (M.Eng.) - Asian Institute of Technology, 1981


Usage Metrics
View Detail0
Read PDF0
Download PDF0