Abstract

This study examines Indonesian non-oil export success between 1975 and 1994, with a focus on the role of exchange rate management and trade policy in export performance across sectors. To examine the link between export quantity and changes in policy, I estimate structural export supply functions that are derived from utility and profit maximization behavior. The results indicate that non-oil exporters respond positively to improved price incentives, including exchange rate devaluation, with the strongest impact in textiles, garments, and sawnwood. The study offers a richer description than previous work of the relationship between price incentives and export performance.

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