Indonesias Beef Cattle Import Quota Policy Changes: A Computable General Equilibrium Approach
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Institusion

Universitas Padjadjaran

Author

Sunaryo, Rizqi Agti

Subject

 

Datestamp

2021-11-23 00:00:00 

Abstract :
ABSTRACT Indonesia’s Beef Cattle Import Quota Policy changes: A Computable General Equilibrium Approach By Rizqi Agti Sunaryo This study attempts to analyze the possible impact of the elimination of beef cattle import quota policy on Indonesia’s economy by focusing in domestic farmers and social welfare. The method that employed in this study is a static Computable General equilibrium (CGE) model. The database for the model is Indonesia’s social accounting matrix, which was composed based on Indonesia’s Input-Output table 2010 from Statistics Indonesia. The simulation in this study was conducted based on two scenarios: Indonesian economy with beef cattle import quota (scenario A) and Indonesia economy without beef cattle import quota (scenario B). According to Carbough (2011), an import quota could positively affect the domestic producer. The simulation result is showing the congeniality with the import quota theory, by showing the positive effect of import quota for domestic farmers. However, the simulation results also show the positive impact of import quota on the social welfare, while several previous study states that import quota will lead to a negative impact on social welfare. Eventually, based on the simulation results which compared with the benchmark, Indonesia domestic farmers and the society would be better off under beef cattle import quota. Keywords: Domestic farmers, import quota, static CGE, social welfare