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Import competition and local labor markets: the case of Indonesia
Author(s) -
Fina Sri Agustina
Publication year - 2018
Publication title -
economic journal of emerging markets
Language(s) - English
Resource type - Journals
eISSN - 2502-180X
pISSN - 2086-3128
DOI - 10.20885/ejem.vol10.iss2.art6
Subject(s) - competition (biology) , unemployment , indonesian , labour economics , economics , globalization , manufacturing , consumption (sociology) , business , market economy , economic growth , ecology , linguistics , philosophy , marketing , biology , social science , sociology
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

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