Trade liberalization and technical efficiency in the Indonesian chemicals industry
This article examines the impact of trade reform on technical efficiency on the Indonesian chemicals industry using firm-level panel data. The effects of trade reform on technical efficiency are analysed using a stochastic frontier approach. Two variables represent trade reform in this model: effect...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
Routledge
2017
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| Online Access: | http://hdl.handle.net/20.500.11937/51369 |
| _version_ | 1848758681098780672 |
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| author | Suatmi, B. Bloch, Harry Salim, Ruhul |
| author_facet | Suatmi, B. Bloch, Harry Salim, Ruhul |
| author_sort | Suatmi, B. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This article examines the impact of trade reform on technical efficiency on the Indonesian chemicals industry using firm-level panel data. The effects of trade reform on technical efficiency are analysed using a stochastic frontier approach. Two variables represent trade reform in this model: effective rate of protection (ERP) and import ratio (IMP). The findings of the present study suggest that both trade reform variables have significant effects on technical efficiency. The coefficient of ERP has a positive sign and is statistically significant, which means that an increase in ERP increases the inefficiency (or decreases the technical efficiency) of firms in the chemicals industry. The coefficient of IMP is negative and statistically significant, which represents the negative impact of IMP on technical inefficiency (or positive on technical efficiency). Thus, trade reform, a reduction in ERP or an increase in IMP, has an unambiguously positive effect on technical efficiency in the Indonesian chemicals industry. |
| first_indexed | 2025-11-14T09:47:51Z |
| format | Journal Article |
| id | curtin-20.500.11937-51369 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:47:51Z |
| publishDate | 2017 |
| publisher | Routledge |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-513692018-02-02T00:22:09Z Trade liberalization and technical efficiency in the Indonesian chemicals industry Suatmi, B. Bloch, Harry Salim, Ruhul This article examines the impact of trade reform on technical efficiency on the Indonesian chemicals industry using firm-level panel data. The effects of trade reform on technical efficiency are analysed using a stochastic frontier approach. Two variables represent trade reform in this model: effective rate of protection (ERP) and import ratio (IMP). The findings of the present study suggest that both trade reform variables have significant effects on technical efficiency. The coefficient of ERP has a positive sign and is statistically significant, which means that an increase in ERP increases the inefficiency (or decreases the technical efficiency) of firms in the chemicals industry. The coefficient of IMP is negative and statistically significant, which represents the negative impact of IMP on technical inefficiency (or positive on technical efficiency). Thus, trade reform, a reduction in ERP or an increase in IMP, has an unambiguously positive effect on technical efficiency in the Indonesian chemicals industry. 2017 Journal Article http://hdl.handle.net/20.500.11937/51369 10.1080/00036846.2017.1282150 Routledge fulltext |
| spellingShingle | Suatmi, B. Bloch, Harry Salim, Ruhul Trade liberalization and technical efficiency in the Indonesian chemicals industry |
| title | Trade liberalization and technical efficiency in the Indonesian chemicals industry |
| title_full | Trade liberalization and technical efficiency in the Indonesian chemicals industry |
| title_fullStr | Trade liberalization and technical efficiency in the Indonesian chemicals industry |
| title_full_unstemmed | Trade liberalization and technical efficiency in the Indonesian chemicals industry |
| title_short | Trade liberalization and technical efficiency in the Indonesian chemicals industry |
| title_sort | trade liberalization and technical efficiency in the indonesian chemicals industry |
| url | http://hdl.handle.net/20.500.11937/51369 |