Document Type
Article
Abstract
This paper analyzes the impact of entry ports reduction on horticultural production on the economic activities, prices and also toward social welfare by using Computable General Equilibrium (CGE) model. The simulation shows higher import restriction on horticultural products will not only increase the factor income (at current value), but will also increase the composite prices. The higher effect of the latter leads to social welfare reduction, but on the other hand favors the agriculture household types. This finding shows import restriction on horticulture product serves as income redistribution policy instrument. With regard to this, the monetary authority should take the issue into account, especially in order to anticipate the effect of composite prices increase, which could lead to the need of extra efforts in managing price stability. Keywords: import reduction; prices, inflation, CGE; social welfare; income distribution.JEL Classification: E25, E27
Recommended Citation
Winardi, Wisnu
(2013)
"THE IMPORT RESTRICTION OF HORTICULTURAL PRODUCT, DOMESTIC ACTIVITIES, PRICE LEVEL, AND THE WELFARE,"
Bulletin of Monetary Economics and Banking: Vol. 16:
No.
1, Article 3.
DOI: https://doi.org/10.21098/bemp.v16i1.436
Available at:
https://bulletin.bmeb-bi.org/bmeb/vol16/iss1/3
First Page
19
Last Page
38
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Country
Indonesia
Affiliation
Badan Pusat Statistik Indonesia
