The Social Impact of a WTO Agreement in Indonesia

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Robilliard, Anne-Sophie
dc.contributor.author
Robinson, Sherman
dc.date.accessioned
2012-06-20T15:29:46Z
dc.date.available
2012-06-20T15:29:46Z
dc.date.issued
2005-10
dc.date.lastModified
2021-04-23T14:02:43Z
dc.description.abstract
Indonesia experienced rapid growth and the expansion of the formal financial sector during the last quarter of the 20th century. Although this tendency was reversed by the shock of the financial crisis that spread throughout Asia in 1997 and 1998, macroeconomic stability has since then been restored, and poverty has been reduced to pre-crisis levels. Poverty reduction remains nevertheless a critical challenge for Indonesia with over 110 million people (53 percent of the population) living on less than $2 a day. The objective of this study is to help identify ways in which the Doha Development Agenda might contribute to further poverty reduction in Indonesia. To provide a good technical basis for answering this question, the authors use an approach that combines a computable general equilibrium (CGE) model with a microsimulation model. This framework is designed to capture important channels through which macroeconomic shocks affect household incomes. It allows making recommendations on specific trade reform options as well as on complementary development policy reforms. The framework presented in this study generates detailed poverty outcomes of trade shocks. Given the magnitude of the shocks examined here and the structural features of the Indonesian economy, only the full liberalization scenario generates significant poverty changes. The authors examine their impact under alternative specifications of the functioning of labor markets. These alternative assumptions generate different results, all of which confirm that the impact of full liberalization on poverty would be beneficial, with wage and employment gains dominating the adverse food price changes that could hurt the poorest households. Two alternative tax replacement schemes are examined. While direct tax replacement appears to be more desirable in terms of efficiency gains and translates into higher poverty reduction, political and practical considerations could lead the Government of Indonesia to choose a replacement scheme through the adjustment of value-added tax rates across nonexempt sectors.
en
dc.identifier
http://documents.worldbank.org/curated/en/2005/10/6329515/social-impact-wto-agreement-indonesia
dc.identifier.uri
http://hdl.handle.net/10986/8520
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper; No. 3747
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
ADVERSE IMPACT
dc.subject
AGGREGATE EMPLOYMENT
dc.subject
AGRICULTURAL PRODUCTS
dc.subject
AGRICULTURAL SUPPORT
dc.subject
AGRICULTURE
dc.subject
BASE YEAR
dc.subject
BENCHMARK
dc.subject
CAPITAL MARKETS
dc.subject
CONSUMER PRICE INDEX
dc.subject
CONSUMERS
dc.subject
CONSUMPTION INCREASES
dc.subject
DEMAND SIDE
dc.subject
DEVELOPING COUNTRIES
dc.subject
DEVELOPMENT POLICY
dc.subject
DISAGGREGATED LEVEL
dc.subject
ECONOMETRICS
dc.subject
ECONOMIC GROWTH
dc.subject
ECONOMIC SYSTEMS
dc.subject
ELASTICITY
dc.subject
EMPLOYMENT INCOME
dc.subject
EMPLOYMENT INCOMES
dc.subject
EMPLOYMENT STATUS
dc.subject
EQUILIBRIUM
dc.subject
ERROR TERM
dc.subject
ESTIMATION METHOD
dc.subject
EVALUATING POVERTY
dc.subject
EXCHANGE RATE
dc.subject
EXPORT DIVERSIFICATION
dc.subject
EXPORTS
dc.subject
EXTERNAL TRADE
dc.subject
FARMERS
dc.subject
FINANCIAL CRISIS
dc.subject
FINANCIAL SECTOR
dc.subject
FOOD CROPS
dc.subject
FOOD PRICE
dc.subject
FOOD PRICES
dc.subject
FOOD PRODUCTS
dc.subject
FOREIGN EXCHANGE
dc.subject
FOREIGN TRADE
dc.subject
FREE TRADE
dc.subject
FULL EMPLOYMENT
dc.subject
GDP
dc.subject
GINI INDEX
dc.subject
GROWTH IMPACT
dc.subject
GROWTH RATE
dc.subject
HEADCOUNT POVERTY
dc.subject
HOUSEHOLD HEAD
dc.subject
HOUSEHOLD HEADS
dc.subject
HOUSEHOLD INCOME
dc.subject
HOUSEHOLD INCOMES
dc.subject
HOUSEHOLD LEVEL
dc.subject
HOUSEHOLD SURVEY
dc.subject
HOUSEHOLD SURVEYS
dc.subject
IMPACT ON POVERTY
dc.subject
IMPERFECT SUBSTITUTES
dc.subject
IMPORT TARIFFS
dc.subject
INCIDENCE OF POVERTY
dc.subject
INCOME
dc.subject
INCOME DISTRIBUTION
dc.subject
INCOME GAINS
dc.subject
INCOME GENERATION
dc.subject
INCOME INCREASE
dc.subject
INCREASE
dc.subject
INDIVIDUAL LEVEL
dc.subject
INEQUALITY
dc.subject
INEQUALITY INDICATORS
dc.subject
INFORMAL ACTIVITIES
dc.subject
INFORMAL SECTORS
dc.subject
INSURANCE
dc.subject
INTERNATIONAL TRADE
dc.subject
LABOR FORCE
dc.subject
LABOR MARKET
dc.subject
LABOR MARKETS
dc.subject
LIVESTOCK PRODUCTS
dc.subject
LOW TARIFFS
dc.subject
MACROECONOMIC SHOCKS
dc.subject
MACROECONOMIC STABILITY
dc.subject
MARGINAL VALUE
dc.subject
MICRO MODEL
dc.subject
NATIONAL ACCOUNTS
dc.subject
NATIONAL LEVEL
dc.subject
NATIONAL POVERTY
dc.subject
NATIONAL POVERTY LINES
dc.subject
NON-POOR HOUSEHOLDS
dc.subject
OBSERVED CHANGES
dc.subject
PER CAPITA CONSUMPTION
dc.subject
PER CAPITA INCOME
dc.subject
POLICY ENVIRONMENT
dc.subject
POLICY REFORMS
dc.subject
POLICY RESEARCH
dc.subject
POLICY REVIEW
dc.subject
POOR
dc.subject
POOR HOUSEHOLD
dc.subject
POOR HOUSEHOLDS
dc.subject
POVERTY
dc.subject
POVERTY CHANGES
dc.subject
POVERTY GAP
dc.subject
POVERTY HEADCOUNT
dc.subject
POVERTY IMPACT
dc.subject
POVERTY INCIDENCE
dc.subject
POVERTY INDICATORS
dc.subject
POVERTY LINE
dc.subject
POVERTY LINES
dc.subject
POVERTY OUTCOMES
dc.subject
POVERTY REDUCING
dc.subject
POVERTY REDUCTION
dc.subject
POVERTY REDUCTION POLICIES
dc.subject
POVERTY REDUCTIONS
dc.subject
PRICE CHANGES
dc.subject
PRIVATE CONSUMPTION
dc.subject
PRODUCTIVITY GROWTH
dc.subject
PUBLIC CAPITAL
dc.subject
PUBLIC POLICY
dc.subject
QUOTA RENTS
dc.subject
RAPID GROWTH
dc.subject
REAL GDP
dc.subject
REPRESENTATIVE SAMPLES
dc.subject
RURAL
dc.subject
RURAL AREA
dc.subject
RURAL AREAS
dc.subject
RURAL FEMALE
dc.subject
RURAL SECTOR
dc.subject
RURAL SECTORS
dc.subject
SAVINGS
dc.subject
SIMULATION TECHNIQUES
dc.subject
SKILLED WAGE
dc.subject
SOCIAL IMPACTS
dc.subject
SQUARED POVERTY GAP
dc.subject
STANDARD DEVIATION
dc.subject
TEMPORARY UNEMPLOYMENT
dc.subject
TRADE BALANCE
dc.subject
TRADE LIBERALIZATION
dc.subject
TRADE POLICY
dc.subject
TRADE REFORMS
dc.subject
TRADE SHOCKS
dc.subject
UNEMPLOYMENT
dc.subject
UNEMPLOYMENT BENEFITS
dc.subject
UNSKILLED LABOR
dc.subject
URBAN AREA
dc.subject
URBAN AREAS
dc.subject
URBAN HOUSEHOLDS
dc.subject
VALUE ADDED
dc.subject
WAGE INCOME
dc.subject
WAGES
dc.subject
WEALTH
dc.subject
WORLD TRADE ORGANIZATION
dc.subject
WTO
dc.title
The Social Impact of a WTO Agreement in Indonesia
en
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2005/10/6329515/social-impact-wto-agreement-indonesia
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Social, Urban, Rural and Resilience
okr.globalpractice
Poverty
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-3747
okr.identifier.externaldocumentum
000016406_20051006151455
okr.identifier.internaldocumentum
6329515
okr.identifier.report
WPS3747
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/10/06/000016406_20051006151455/Rendered/PDF/wps3747.pdf
en
okr.region.administrative
East Asia and Pacific
okr.region.country
Indonesia
okr.topic
Poverty Reduction :: Achieving Shared Growth
okr.topic
Economic Theory and Research
okr.topic
Poverty Reduction :: Rural Poverty Reduction
okr.topic
Poverty Reduction :: Poverty Assessment
okr.topic
Poverty Reduction :: Inequality
okr.topic
Macroeconomics and Economic Growth
okr.topic
Rural Development
okr.unit
Development Research Group (DECRG)
okr.volume
1 of 1

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