Recent research

Publication type: Working paper

Title: The heterogeneous impact of tariff and non-tariff measures on total factor productivity on Indonesia firms

Author(s): Krisna Gupta

Excerpt:

Indonesian government has been working hard in engaging with the world market as average tariff keeps on decreasing. However, it seems to rely on Non-Tariff Measures (NTM) rather than tariffs to protect its industries. This paper inspects whether these measures hurt firms by limiting their access to better quality and cheaper foreign inputs. This paper builds on Amiti and Konings (2007) to inspect the impact of trade policy shocks to firm’s Total Factor Productivity (TFP).

Date of publication: 2021

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Publication type: Working paper

Title: Out of communal land: Clientelism through delegation of agricultural tenancy contracts

Author(s): Takashi Kurosaki,Saumik Paul,Firman Witoelar

Excerpt:

Do local institutions influence the nature of political clientelistic exchange? We find a positive answer in the context of a village institution prevalent in Java since the Dutch colonial rule, where democratically elected village heads receive usufruct rights over a piece of communal village land (bengkok land) as a

Date of publication: 2021

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Publication type: Working paper

Title: Irrigation inequality, rice farming productivity and food insecurity in rural Cambodia

Author(s): Budy P. Resosudarmo,Kimlong Chheng

Excerpt:

This paper investigates the impacts of inequality access to irrigation on rice farming productivity as measured by rice yield and revenue per hectare and on food insecurity among rice farmers in rural Cambodia. Using our own household survey administered in 2014 to 251 rice farming households in 32 rural villages in four provinces, we show that better irrigation access, particularly reservoir, dike, or canal irrigation, provide households with significantly higher rice production and revenue.

Date of publication: 2021

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Publication type: Working paper

Title: The impact of employment protection on FDI at different stages of economic development

Author(s): Sulistiyo K. Ardiyono,Arianto A. Patunru

Excerpt:

There has been much debate on how to design employment protection regulations that balance the need to attract FDI on the one hand and to protect workers’rights on the other hand.This study explores this ‘dilemma’, using a multi-country dataset for2003to 2015and treating hiring and firing regulation and the other explanatory variables as endogenous.The findings indicate that flexible hiring and firing regulations (HFRs) is essential for FDI promotion in the early stages of economic development of a country; but the impact of labour market flexibility on FDI gradually decreases and ev

Date of publication: 2021

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Publication type: Working paper

Title: Repositioning Indonesia in the post-COVID-19 global value chains

Author(s): Andree Surianta,Arianto A. Patunru

Excerpt:

As the Global Value Chains (GVC) struggle to restructure around COVID-19 transport restrictions and its economic fallout, Indonesia faces an uphill battle to restart its economy and stave off ballooning unemployment. With stagnant economic growth now turning into recession, President Joko “Jokowi” Widodo pushes for the biggest regulatory reform in recent history through the Omnibus Law on Job Creation.

Date of publication: 2021

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Publication type: Working paper

Title: The International Monetary Fund and capital flows

Author(s): Stephen Grenville

Excerpt:

Controls on international capital flows were a central issue for the International Monetary Fund at Bretton Woods in 1944. But by the 1970s, mainstream thinking was encouraging open capital flows. A succession of damaging crises followed: Latin America in the 1980s, Mexico again in 1994 and Asia in 1997. Fund policies were tweaked, but the causes were seen as being largely in the recipient countries. Capital controls were specifically rejected. Nevertheless, the Fund’s view began to shift, probably encouraged by the 2008 global financial crisis.

Date of publication: 2021

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Publication type: Working paper

Title: How effective is capital flow management? The Indonesian experience

Author(s): Wishnu Mahraddika

Excerpt:

This paper reviews capital flow management (CFM) policy in Indonesia and examines its effectiveness from 2000 to 2019. The methodology involves constructing a new capital flow management policy restrictiveness index (CFMIX) and examining impulse responses of these flows to CFMIX adjustments through structural vector auto-regression (SVAR) estimation. The index shows that the Indonesian CFM policy stance has been more accommodative of capital inflows and restrictive on outflows over time.

Date of publication: 2021

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Publication type: Working paper

Title: Rethinking Sri Lanka’s industrialisation strategy: Achievements, lost opportunities and prospects

Author(s): Prema-chandra Athukorala

Excerpt:

The purpose of this paper is to contribute to the contemporary policy debate in Sri Lanka on industrialization strategy by analysing policy regime shifts and their outcome in terms of export performance, growth and employment during the post-independence era. The analysis is guided by the received body of knowledge relating to the challenges faced by a small economy that takes world prices as given and is unable to affect world demand and supply in designing national industrialisation strategy in this era of economic globalization.

Date of publication: 2021

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