@article{Baharsjah:197717,
      recid = {197717},
      author = {Baharsjah, Sjarifudin and Hadiwigeno, Soetatwo and Dillon,  H.S. and Hedley, Douglas D. and Tabor, Steven R.},
      title = {Trade Policy, Self-Sufficiency, and Liberalization in the  Indonensian Food Economy},
      address = {1989},
      number = {994-2016-77797},
      pages = {7},
      year = {1989},
      abstract = {International trade in food crops has historically played  a residual, supply-augmenting role in the
Indonesian food  economy. Indonesia was able to transform its rice economy  technologically and stimulate rapid
growth in rural income  and consumption levels while protecting the domestic  economy over the 15-year period
ending in 1985. A slowdown  in economic growth, combined with a deteriorating external  payments situation, has
led Indonesian planners to adopt a  more open and outward-oriented approach to economic  management. For
agriculture, trade liberalization is  understood as being a part of this new, outward-oriented,  development approach.
The costs of shifting the  agricultural economy to a more liberalized trade rCgime  were simulated using a
multimarket agricultural sector  econometric model. The results of the static simulation  show that the transition
costs, in terms of higher impon  demand, lower fann income, and lower employment absorption,  will be high. This
argues that, particularly in a depressed  world primary commodities market, a sound economic case can  be made for
special and differential treatment of  protectionism in the developing economies. The extent to  which labour wages
are flexible will also have a  significant influence on the economic gains from trade  liberalization. In the Indonesian
agricultural economy,  where a high degree of rural underemployment is evident,  complete trade liberalization will
not be a first-best  development policy choice.},
      url = {http://ageconsearch.umn.edu/record/197717},
      doi = {https://doi.org/10.22004/ag.econ.197717},
}