We investigate the impact of increased trade with China on poverty in Indonesia, focusing on two key liberalization phases: China’s WTO entry in 2001 and the ASEAN-China Free Trade Agreement (ACFTA) implementation in 2010. Using district-level trade exposure and an instrumental variable approach, we find that regions facing greater import competition post-ACFTA experienced faster poverty reduction, particularly driven by increased imports of raw materials and intermediate goods. However, expanded market access to China had limited poverty impact. Regional disparities, shaped by urbanization, education, and literacy, underscore the need for targeted policies to ensure equitable distribution of trade benefits.

Tuesday, 8 October 2024 at 14.00-15.30 WIB (GMT+7)

The seminar will be in hybrid format (in person and online)

Venue: Ruang Rapat Papua, Menara Bappenas Floor 5, Jl H. R. Rasuna Said Kav. B2, Kuningan, Jakarta Selatan

To participate in person, register from this link: bit.ly/fkp1008_luring

To participate online, register on Zoom: bit.ly/fkp1008