ANALISIS TINGKAT PROTEKSI EFEKTIF (ERP) DALAM SEKTOR INDUSTRI INDONESIA

Abstract

This research attempts to evaluate degree of protection in the Indonesia’s industrial sector by applying the concept of effective rate of protection (ERP). The theory of protection suggests that, in a situation where distortions are absent, tarif and non-tarif barriers will have a number of readily identifiable resource allocation effects. This research shows that industrial sectors are still far away from GATT, which requires its members to decrease gradually tarifs in particular industrial sectors, since efforts to protect domestik market are not legally allowed by the GATT framework.