Open AccessDAMPAK PEMBATASAN IMPOR HORTIKULTURA TERHADAP AKTIVITAS PEREKONOMIAN, TINGKAT HARGA DAN KESEJAHTERAAN
Author(s) -
Wisnu Winardi
Publication year - 2014
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 4
ISSN - 1410-8046
DOI - 10.21098/bemp.v16i1.36
Subject(s) - computable general equilibrium , economics , welfare , redistribution (election) , inflation (cosmology) , distribution (mathematics) , social welfare , price of stability , redistribution of income and wealth , income distribution , welfare economics , macroeconomics , market economy , inequality , monetary policy , political science , unemployment , mathematical analysis , physics , mathematics , law , politics , theoretical physics
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