Logo IPI  
Journal > QE JOURNAL > THE IMPACT OF FREE TRADE BETWEEN ASEAN AND CHINA ON THE INDONESIAN HOUSEHOLDS

 

Full Text PDF (315 kb)
QE JOURNAL
Vol 3, No 02 (2014): QE Journal Edisi Juni 2014
THE IMPACT OF FREE TRADE BETWEEN ASEAN AND CHINA ON THE INDONESIAN HOUSEHOLDS
Article Info   ABSTRACT
Published date:
15 Nov 2015
 
Free trade agreement between ASEAN and China was executed in early2010. Various types of trade tariffs have been removed or lowered to support the agreement which may lead to changes in the welfare of Indonesian households. This research tries to find out the impact of ASEAN-China free trade agreement on the welfare of households in Indonesia. The model used for this analysis is AGEFIS model, a Computable General Equilibrium model of Indonesian economy. The findings of this research show that the free trade between ASEAN and China increases the level of economic activity. Various macroeconomic indicators such as output and exports increase relative to the output prior to the free trade agreement. Income of urban households rise but rural households are adversely affected. Skilled-workers benefits more than unskilled ones.Keywords : ASEAN-CHINA Free Trade Area, AGEFIS, Shock, SAM
Copyrights © 2015