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Trade Policy and Exporters’ Resilience : Evidence from Indonesia (Английский)

How does trade policy affect exporters’ ability to respond to foreign demand shocks? Faced with a sudden change in the demand for their goods, exporting firms must optimally change their inputs and/or input sources. This paper tests whether a country’s own trade policy makes such adjustments harder for firms that rely on imported inputs. The analysis exploits new time-varying data on tariffs and non-tariff measures faced by Indonesian firms and focuses...
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