Trade exposure and child mortality in Indonesia
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PhD Seminar (Econ)
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We aim to contribute to the debate over the nexus between trade and health by investigating the effect of tariff exposure on regional health outcomes in Indonesia. We focus on infant and under five mortality rates as specific measures of health. Exploiting Indonesian Basic Health Survey 2007, we linked child mortality rates to tariff exposure in 283 districts in Indonesia. We find that infant and under five mortality rates were lower in districts with greater exposure to intermediate input tariffs, and the effects were stronger in rural compared to urban areas. Examining potential mechanisms for this result, we find that higher trade exposures were associated with higher percapita income, more health facilities, higher share of manufacturing employment and lower fertility rates.
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