Abstract
There is a long tradition in economic development that highlights the role of nourishment in the transition from a subsistence into a mature economy. The purpose of this chapter is to provide an empirical basis for the relationship between trade reforms and population nutritional status using Indonesia as a case study. The analysis employs a panel data of Indonesian districts from four waves of the National Socioeconomic Survey in 1993, 1999, 2005, and 2011 to estimate the degree to which exogenous variations in tariff barriers affect endogenous variations in nutrient consumption. Simultaneous equation estimation results show that lower tariff barriers are expected to lead to a positive and significant impact on nutritional status.
This study is made possible by a research grant from the Australia-Indonesia Centre. We thank Wisnu Harto for excellent research assistance, Yessi Vadila for providing tariff exposure data, and the Australian Data Archive for the Indonesian National Socioeconomic Survey (Susenas) data.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
Data from FAOSTAT statistics database. Retrieved March 26, 2018 from the Food and Agriculture Organization of the United Nations website http://www.fao.org/faostat/en/#data
- 2.
We use IO table with 66 sectors based on the 1990 economic census published by Statistics Indonesia (BPS).
- 3.
The technical exposition of the methods used in this study is available upon request.
- 4.
Another complication is that Aceh was not surveyed by BPS in 2005.
References
Amiti M, Cameron L (2012) Trade liberalization and the wage skill premium: evidence from Indonesia. J Int Econ 87(2):277–287
Amiti M, Konings J (2007) Trade liberalization, intermediate inputs and productivity: evidence from Indonesia. Am Econ Rev 97(5):1611–1638
ASEAN/UNICEF/WHO (2016) Regional report on nutrition security in ASEAN, vol 2. UNICEF, Bangkok
Basri, Patunru A (2012) How to keep trade policy open: the case of Indonesia. Bull Indones Econ Stud 48(2):191–208
Behrman JR, Deolalikar AB (1988) Health and nutrition. Handbook of development economics, vol 1. Elsevier, Amsterdam, pp 631–711
Bernard AB, Jensen JB (2004) Why some firms exports. Rev Econ Stat 86(2):561–569
Bloom DE, Chen S, McGovern ME, Prettner K, Candeias V, Bernaert A, Cristin S (2015) Economics of non-communicable diseases in Indonesia. World Economic Forum and Harvard School of Public Health, Geneva
BPS (Badan Pusat Statistik) (2011) Consumption of calorie and protein in Indonesia 2011. BPS, Jakarta
Feridhanusetyawan T, Pangestu M (2003) Indonesian trade liberalisation: estimating the gains. Bull Indones Econ Stud 39(1):51–74
Grossman GM, Helpman E (2002) Interest groups and trade policy. Princeton University Press, Princeton
Hawkes C, Grace D, Thow AM (2015) Trade liberalization, food, nutrition and health. In: Smith R, Blouin C, Mirza Z, Neyer P, Drager N (eds) Trade and health: towards building a national strategy. World Health Organization, Geneva
Hayduk LA (1987) Structural equation modeling with LISREL: essentials and advances. John Hopkins University Press, Baltimore
Hill H, Resosudarmo BP, Vidyattama Y (2008) Indonesia’s changing economic geography. Bull Indones Econ Stud 44(3):407–435
Hymans SH, Shapiro HT (1976) The allocation of household income to food consumption. J Econ 4(2):167–188
International Monetary Fund (2017) Making trade an engine of growth for all: the case for trade and for policies to facilitate adjustment. IMF Policy Papers April 10, 2017
Kis-Katos K, Sparrow R (2011) Child labor and trade liberalization in Indonesia. J Hum Resour 46(4):722–749
Kis-Katos K, Sparrow R (2015) Poverty, labor markets and trade liberalization in Indonesia. J Dev Econ 117:94–106
Krugman P, Cooper RN, Srinivasan TN (1995) Growing world trade: causes and consequences. Brook Pap Econ Act 1995(1):327–377
Leibenstein H (1957) Economic backwardness and economic growth. Wiley, New York
Lemieux T (2002) Decomposing changes in wage distributions: a unified approach. Canadian Journal of Economics/Revue Canadienne d’Economique 35(4):646–688
McCaig B (2011) Exporting out of poverty: provincial poverty in Vietnam and US market access. J Int Econ 85(1):102–113
MacCallum R (1986) Specification searches in covariance structure modeling. Psychol Bull 100(1):107
Mansury Y, Sohn W (2015) Are financial activities harmful for regional growth? Contradictory evidence from the Indonesian panel data. Appl Econ 47(5):519–530
O’Rourke KH, Williamson JG (2002) When did globalisation begin? Eur Rev Econ Hist 6(1):23–50
Pangestu M, Rahardja S, Ing LY (2015) Fifty years of trade policy in Indonesia: new world trade, old treatments. Bull Indones Econ Stud 51(2):239–261
Patunru A, Rahardja S (2015) Trade protectionism in Indonesia: bad times and bad policy. Analysis. Lowy Institute for International Policy
Paz LS (2014) The impacts of trade liberalization on informal labor markets: a theoretical and empirical evaluation of the Brazilian case. J Int Econ 92(2):330–348
Pinstrup-Andersen P, Rosegrant MW (eds) (2001) The unfinished agenda: perspectives on overcoming hunger, poverty, and environmental degradation. International Food Policy Research Institute, Washington, DC
Pitt MM, Rosenzweig MR, Hassan MN (1990) Productivity, health, and inequality in the intrahousehold distribution of food in low-income countries. Am Econ Rev 80(5):1139–1156
Resosudarmo BP, Kuncoro A (2006) The political economy of Indonesian economic reform: 1983–2000. Oxf Dev Stud 34(3):341–355
Rodriguez F, Rodrik D (2001) Trade policy and economic growth: a skeptic’s guide to the cross-national evidence. NBER Macroeconomics Annual 2000. MIT Press, Cambridge, MA
Satorra A, Bentler PM (1994) Corrections to test statistics and standard errors in covariance structure analysis. In: von Eye A, Clogg CC (eds) Latent variables analysis: applications for developmental research. Sage, Thousand Oaks
Smith JP (1999) Healthy bodies and thick wallets: the dual relation between health and economic status. J Econ Perspect 13(2):145–166
Stiglitz JE (1976) The efficiency wage hypothesis, surplus labour, and the distribution of income in LDCs. Oxf Econ Pap 28(2):185–207
Strauss J, Thomas D (1998) Health, nutrition, and economic development. J Econ Lit 36(2):766–817
Subramanian SV, Belli P, Kawachi I (2002) The macroeconomic determinants of health. Annu Rev Public Health 23(1):287–302
Thomas D, Strauss J (1997) Health and wages: evidence on men and women in urban Brazil. J Econ 77(1):159–185
Thow AM, Hawkes C (2009) The implications of trade liberalization for diet and health: a case study from Central America. Glob Health 28, 5
World Bank (2017) Making trade an engine of growth for all: the case for trade and for policies to facilitate adjustment. World Bank Group, Washington, DC
World Bank (2018) Towards inclusive growth. Indonesia Economic Quarterly, March 2018
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2019 Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Kuncoro, A., Mansury, Y., Patunru, A.A., Resosudarmo, B.P. (2019). Do Trade Reforms Promote Nutritional Status? Evidence from Indonesia. In: Batabyal, A., Higano, Y., Nijkamp, P. (eds) Disease, Human Health, and Regional Growth and Development in Asia. New Frontiers in Regional Science: Asian Perspectives, vol 38. Springer, Singapore. https://doi.org/10.1007/978-981-13-6268-2_7
Download citation
DOI: https://doi.org/10.1007/978-981-13-6268-2_7
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-13-6267-5
Online ISBN: 978-981-13-6268-2
eBook Packages: Economics and FinanceEconomics and Finance (R0)