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Full-Text Articles in International Economics
Deregulation And Trade Liberalization: The Indonesia Reform Program, Scott Fausti, Rony Bishry
Deregulation And Trade Liberalization: The Indonesia Reform Program, Scott Fausti, Rony Bishry
Economics Staff Paper Series
Beginning in the early 1980s, Indonesia embarked on the most comprehensive trade liberalization program in its history. The long-term goal of the reform program is to replace Indonesia's industrial development strategy of import substitution industrialization with one of export oriented industrial growth. The issues to be discussed in this paper are: 1) the historical context from which the current liberalization program evolved, 2) the recent reform measures implemented by the Indonesian government, 3) the pattern of liberalization with respect to the sequencing and speed of reforms, and 4) the successes and failures of the new trade regime.
The Effect Of Uncertainty On A Joint Product Model Of Smuggling, Scott Fausti
The Effect Of Uncertainty On A Joint Product Model Of Smuggling, Scott Fausti
Economics Staff Paper Series
Extending the seminal work of Bhagwati and Hansen (1973) on smuggling, Pitt (1981) developed a joint export smuggling model to investigate the welfare effect of illegal transactions. This paper develops an extension of Pitt's original model which allows many of the interesting features of the Bhagwati and Hansen model to be reexamined within a joint product model of smuggling framework. The extension is made through the following modifications to Pitt's assumptions: 1) firms that export are free to engage in joint product smuggling or strictly legal trade; and 2) uncertainty is introduced into the model via active government enforcement. The …