CHALLENGE FOR ASEAN-CHINA FREE TRADE AGREEMENT ON INDONESIA EMPLOYMENT

<div>This research analyzes the challenges for Indonesian economy towards the implementation of</div><div>ASEAN-China Free Trade Area (ACFTA) especially on employment opportunity in Indonesia.</div><div>Using regression technique, the labour cost and change in fix capit...

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Bibliographic Details
Main Authors: Fatimah Riswati, Indro Warsito
Format: Article
Language:English
Published: Universitas Islam Indonesia 2011-09-01
Series:Economic Journal of Emerging Markets
Online Access:http://jurnal.uii.ac.id/index.php/JEP/article/view/2387
Description
Summary:<div>This research analyzes the challenges for Indonesian economy towards the implementation of</div><div>ASEAN-China Free Trade Area (ACFTA) especially on employment opportunity in Indonesia.</div><div>Using regression technique, the labour cost and change in fix capital are statistically significant in</div><div>influencing the employment opportunity. This result implies that ACFTA will challenge the Indonesian</div><div>competitiveness due to increasing labour cost, while ACFTA also potentially increases capital</div><div>flow from China which has ambiguous impacts on labour absorption. The SWOT (Strength,</div><div>Weakness, Opportunity and Threat) analysis recommends for Indonesian government to improve</div><div>comprehensive strategy of national industry to be more competitive to China products.</div><div><br /></div><div>Keywords: ACFTA, employment opportunity, structural equation model</div><div>JEL classification numbers: F13, F14, F15, F42</div>
ISSN:2086-3128
2502-180X