Import competition and local labor markets: the case of Indonesia

Fina Sri Agustina ()

Economic Journal of Emerging Markets, 2018, vol. 10, issue 2, 177-186

Abstract: This paper analyzes the effects of import competition on Indonesian local labor markets in term of manufacturing employment share, non-manufacturing employment share, unemployment rate, and wages. A rapid increase of globalization has caused many countries including Indonesia experienced a significant increase in imports, which lead to a tougher import competition. Using data of imports and 430 districts in Indonesia in the period of 2007-2013, we found that import competition has negatively affected manufacturing employment share, non-manufacturing employment share, and wages. It also increased unemployment. In addition, the highest impact was mainly driven by imports of consumption goods

Keywords: import competition; local labor market; Indonesia (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:uii:journl:v:10:y:2018:i:2:p:177-186:id:10243

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