Publication:
Trade Policy and Exporters’ Resilience: Evidence from Indonesia

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dc.contributor.authorCali, Massimiliano
dc.contributor.authorGhose, Devaki
dc.contributor.authorMontfaucon, Angella Faith
dc.contributor.authorRuta, Michele
dc.date.accessioned2022-05-31T18:32:09Z
dc.date.available2022-05-31T18:32:09Z
dc.date.issued2022-05
dc.description.abstractHow does trade policy affect exporters’ ability to respond to foreign demand shocks Faced with a sudden change in the demand for their goods, exporting firms must optimally change their inputs and/or input sources. This paper tests whether a country’s own trade policy makes such adjustments harder for firms that rely on imported inputs. The analysis exploits new time-varying data on tariffs and non-tariff measures faced by Indonesian firms and focuses on the impact of exchange rate shocks on exports to Japan. In response to a depreciation of the yuan, which makes Chinese exports more competitive, the findings show that firms that face non-tariff measures on their inputs see a much larger drop in their export values compared to firms that do not face any non-tariff measures. That is not the case for import tariffs on inputs, which do not affect the export response to the shock. This difference is consistent with the (partial) fixed costs imposed by non-tariff measures on imports in contrast to the pure variable costs of tariffs. The magnitude of this effect depends on the type of non-tariff measure and on firms’ characteristics, such as their participation in global value chains, size, and product quality.en
dc.identifierhttp://documents.worldbank.org/curated/en/099740005262220422/IDU06f1f303907f49043730a1f80c37ca333161d
dc.identifier.doi10.1596/1813-9450-10068
dc.identifier.urihttps://hdl.handle.net/10986/37489
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;10068
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectTRADE POLICY
dc.subjectEXCHANGE RATE SHOCK
dc.subjectGLOBAL VALUE CHAIN
dc.subjectRESILIENCE
dc.subjectACCESS TO IMPORTED INPUTS
dc.subjectDEMAND RESILIENCE
dc.subjectSUPPLY CHAIN ACCESS
dc.subjectTARIFF
dc.subjectECONOMIC SHOCK
dc.subjectMARKET ADJUSTMENT
dc.subjectMARKET ACCESS
dc.titleTrade Policy and Exporters’ Resilienceen
dc.title.subtitleEvidence from Indonesiaen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.date.disclosure2022-05-26
okr.date.lastmodified2022-05-26T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099740005262220422/IDU06f1f303907f49043730a1f80c37ca333161d
okr.guid099740005262220422
okr.identifier.doi10.1596/1813-9450-10068
okr.identifier.externaldocumentum33830171
okr.identifier.internaldocumentum33830171
okr.identifier.reportWPS10068
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099740005262220422/pdf/IDU06f1f303907f49043730a1f80c37ca333161d.pdfen
okr.region.countryIndonesia
okr.topicIndustry::General Manufacturing
okr.topicInternational Economics and Trade::Customs and Trade
okr.topicInternational Economics and Trade::Export Competitiveness
okr.topicInternational Economics and Trade::Foreign Trade Promotion and Regulation
okr.topicInternational Economics and Trade::Trade Policy
okr.unitEFI-EAP-MTI-MacroFiscal-2 (EEAM2)
relation.isAuthorOfPublicationf938bd19-ef80-50c5-9b58-e8429fce3b91
relation.isAuthorOfPublication.latestForDiscoveryf938bd19-ef80-50c5-9b58-e8429fce3b91
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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