The Economic Impact of Apec Trade Liberalisation

In an integrated world market, changing global and regional trade policies can affect the economic performance of individual countries. The impacts of trade liberalisation by APEC member countries on the Indonesian macroeconomy, and its various sectors, especially the agricultural industries, are assessed and analysed in this book. An Indonesian Forecasting Model is developed based on the ORANI-F general equilibrium model for Australia in line with The Global Trade Analysis Project (GTAP) model to estimate the impacts of APEC trade liberalisation on changes in global market conditions. APEC trade liberalisation is found to be generally beneficial in enhancing growth in most APEC members in the short run and even more so in the long run, except for North America. In addition, the pattern of winners and losers from trade liberalisation at the sectoral level varies across scenarios. Indonesia s comparative advantage under trade liberalisation will lie more in agricultural production than in agricultural processing.

The impacts of trade liberalisation by APEC member countries on the Indonesian macroeconomy, and its various sectors, especially the agricultural industries, are assessed and analysed in this book.