Tariff reform and income inequality in Indonesia

Yessi Vadila*, Budy P. Resosudarmo*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

2 Citations (Scopus)

Abstract

We investigate the impact of tariff reform—which serves as the main instrument of trade liberalisation—on income inequality in Indonesia, using a panel dataset of 26 provinces for the period of 1977–2012. Our study provides evidence from a long period of trade liberalisation analysis and offers some valuable insights into the nexus between trade liberalisation and income distribution. We find that relative inequality was reduced more in provinces that had more exposure to input tariff liberalisation. Furthermore, the results also suggest that tariff cuts play an important part in poverty reduction.

Original languageEnglish
Pages (from-to)455-475
Number of pages21
JournalRegional Science Policy and Practice
Volume12
Issue number3
DOIs
Publication statusPublished - 1 Jun 2020

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