The non-tariff measures (NTMs) increased all over the world, including Indonesia, as tariff decreased. The imposition of the NTMs on imported intermediate input in the Indonesian manufacturing sector became a concern since the proportion of imported intermediate input is still high. This study explores how an increase in NTMs imposed on imported intermediate input affects both labor productivity and profitability within the Indonesian manufacturing sector in 2010-2015. Thus, firm-level data of the NTMs on intermediate input were constructed. The estimated results provided evidence that increasing NTMs on imported intermediate input decreased both labor productivity and profit, suggesting policy improvements on NTMs imposed on imported intermediate input to reduce trade cost.
|Number of pages||13|
|Journal||International Journal of Economics and Management|
|Publication status||Published - 2020|
- Firm-level data
- Imported intermediate input
- Non-tariff measures