• ISSN: 2010-023X
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing: Engineering & Technology Digital Library, ProQuest, Crossref, Electronic Journals Library , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2017 Vol.8(4): 206-209 ISSN: 2010-023X
DOI: 10.18178/ijtef.2017.8.4.565

Does China-AFTA Impact on Inequality and Employment Rate of Indonesia: Comparing with Other ASEAN Countries

Caria Ningsih
Abstract—China-ASEAN Free Trade Area is the third largest free trade area in terms of nominal GDP and first largest in term of population. Some economists argue that free trade increases the standard of living by concept of comparative advantage and large scale economies. Meanwhile, some others argue that free trade allows leading countries to exploit poor countries; destroy local industryies; and limits social standards and labor. By available data analysis of Gini Index and unemployment rate of ASEAN's countries and China, it can be interpreted that after China-AFTA implementation in 2010, there was increasing income inequality in Indonesia, while in the rest ASEAN countries was remain constant and decrease. Furthermore, the unemployment rate of most of ASEAN countries and China has remain constant from 2010-2012. It means that China-AFTA implementation did not reduce the unemployment rate. Overall, the result analysis of this paper is still ambiguous to describe the impact of free trade toward inequality of regional development between China and ASEAN countries, particularly Indonesia.

Index Terms—China-AFTA, inequality, Indonesia.

C. Ningsih is with the Indonesia University of Education, Indonesia; and he is also with Hankuk University of Foreign Studies, South Korea (e-mail: caria.ningsih@gmail.com, caria.ningsih@hufs.ac.kr).

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Cite: Caria Ningsih, "Does China-AFTA Impact on Inequality and Employment Rate of Indonesia: Comparing with Other ASEAN Countries," International Journal of Trade, Economics and Finance vol.8, no.4, pp. 206-209, 2017.

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