Laporkan Masalah

THE EFFECT OF ASEAN-CHINA FREE TRADE AGREEMENT (ACFTA) ON WAGE AND EMPLOYMENT IN INDONESIA

Mulus Wijaya Kusuma, Professor Yoshikuni Ono

2012 | Tesis | S2 Magister Ek.Pembangunan

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This paper examines the effect of import surge from China on wage and employment in Indonesia for the period of 1999-2008 using panel data of manufacturing industry. I hypothesized that ACFTA induced employment and wage reduction in manufacturing industries in Indonesia caused by increasing import from China. Furthermore, my finding shows the evidence of negative effects of those imports on both wage and employment. High value of the goodness of fit of my models (employment and wage equations) represent that the models can explain employment and wage phenomena in manufacturing industries in Indonesia showing that wage level in manufacturing industries in Indonesia in the pre-agreement period of ACFTA (1999-2003) is different to that of the post-agreement period (2004-2008) although employment level remain slightly similar.

Kata Kunci : ACFTA, Indonesia, Manufacturing, Import, Employment, Wage


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