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Anti-globalisation, poverty and inequality in Indonesia

Author

Listed:
  • Arief Anshory Yusuf
  • Peter Warr
Abstract
Since the 1997-99 Asian Financial Crisis (AFC), the rate of poverty reduction in Indonesia has slowed and economic inequality has increased. At the same time, protectionism also increased, both at the global level and within Indonesia. The objective of this paper is to find the extent, if any, that protectionism, both at the global level and within Indonesia, explains the observed slowing down in poverty reduction and rising We do this using a general equilibrium model of the Indonesian economy which enables detailed calculation of the poverty and inequality impacts of policy changes and external shocks. We conclude that increased protection had harmful effects on both poverty reduction and inequality, but that its impact was relatively small. It was not the major cause of either the slowdown in poverty reduction or increased inequality.

Suggested Citation

  • Arief Anshory Yusuf & Peter Warr, 2018. "Anti-globalisation, poverty and inequality in Indonesia," Departmental Working Papers 2018-03, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2018-03
    as

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    File URL: https://acde.crawford.anu.edu.au/sites/default/files/publication/crawford01_cap_anu_edu_au/2018-04/acde_2018-03.pdf
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    References listed on IDEAS

    as
    1. Arief Yusuf & Budy Resosudarmo, 2015. "On the distributional impact of a carbon tax in developing countries: the case of Indonesia," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(1), pages 131-156, January.
    2. Peter Warr & Arief Anshory Yusuf, 2014. "Fertilizer subsidies and food self-sufficiency in Indonesia," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 571-588, September.
    3. Stephen V. Marks, 2017. "Non-Tariff Trade Regulations in Indonesia: Nominal and Effective Rates of Protection," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 53(3), pages 333-357, September.
    4. Warr, Peter & Yusuf, Arief Anshory, 2011. "Reducing Indonesia’s deforestation-based greenhouse gas emissions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(3), pages 1-25, September.
    5. José Gabriel Palma, 2014. "Has the Income Share of the Middle and Upper-middle Been Stable around the ‘50/50 Rule’, or Has it Converged towards that Level? The ‘Palma Ratio’ Revisited," Development and Change, International Institute of Social Studies, vol. 45(6), pages 1416-1448, November.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Arief A. Yusuf & Reza Anglingkusumo & Andy Sumner & Putri R. Halim & Anggita C.M. Kusuma, 2020. "Routinization And The Changing Task Composition In The Labor Market: Evidence From Indonesia," Working Papers WP/06/2020, Bank Indonesia.

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    More about this item

    Keywords

    Inequality; poverty; Indonesia; general equilibrium;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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