The Impact of Comprehensive and Progressive Trans-Pacific Partnership Free Trade Agreement on Indonesian Economy: Global Trade Analysis Project (GTAP) Model
| Main Authors: | Munandar, Aris, Salam, Annisa Nur, Ridho, M. Taufik |
|---|---|
| Other Authors: | Magister Ekonomika Pembangungan, Fakultas Ekonomika dan Bisnis, Universitas Gadjah Mada |
| Format: | Article info Global Trade Analysis Project (GTAP) Model Journal |
| Bahasa: | eng |
| Terbitan: |
Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga
, 2020
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| Subjects: | |
| Online Access: |
http://ejournal.uin-suka.ac.id/febi/grieb/article/view/1158 |
Daftar Isi:
- The Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) was signed by 11 countries in Santiago, Chile on March 8, 2018. This renewed agreement attracted Indonesia to join. This study analyzes the possible impact of CPTPP implementation on Indonesian economy using Global Trade Analysis Project (GTAP) model. We conduct simulation to evaluate the impact of CPTPP on real GDP, welfare gain/loss, trade balance, term of trade, and aggregate imports of Indonesia. The results show that the implementation of CPTPP leads to an increase in real GDP and welfare of Indonesia. On the other hand, this study found that trade of balance and term of trade of Indonesia decreased when CPTPP was implemented. In addition, overall Indonesia's aggregate imports increased when CPTPP was implemented. The rice, motor vehicles and apparel sectors are the three largest sectors that contribute to the Indonesia's imports. While Indonesia can only rely on the fossil fuels sector (coal, oil, and gas) and livestock sector as a contributor trade surplus.