Indonesian Trade Reform in Close-Up: The Steel and Footwear Experiences 1
In evaluating the widespread trade liberalisation that has occurred in Indonesia since 1983, it is important not to lose sight of the uneveness of many of the reforms, both intra- and inter-industry, that have been implemented. Different industry structures help to account for the different degrees of reform delivered within and between industries. This paper examines the extent and implications of the liberalisation process in two structurally diverse industries — steel and footwear. One objective of this paper is to illustrate the consequences for competitiveness of the reform sequence and the instruments of reform; another is to highlight the impediments to further progress.
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