Trade liberalization agreement creates great opportunities to enhance economic among participating countries. Trade liberalization would inevitably affect the factors of production within countries. The aim of the study is to analyze the impact of trade liberalization on labor demand in manufacturing industries in Indonesia. This study employs industrial manufacturing firm-level data over the period 2008-2013 and was estimated using panel data regression analysis, the Fixed Effect Method. The results indicate that tariff rates, value-added, imports of raw materials, and export significantly affect the labor demand. Furthermore, labor wages have negatively affected the labor demand of Indonesian manufacturing industry.
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In-Text Citation: (Handoyo et al., 2020)
To Cite this Article: Handoyo, R. D., Rabbanisyah, F., Ridzuan, A. R., & Razak, M. I. M. (2020). Trade Liberalization and Labor Demand in Indonesia. International Journal of Academic Research in Business and Social Sciences, 10(5), 753–761.
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