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Volume 13
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10.3390/economies13070199
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Article

Linking Global CGE Models and Sectoral Analysis to Evaluate the Impact of Trade Openness in Service Sector Towards Indonesia Agricultural and Agroindustry

by
Widyastutik
1,2,*,
Birka Septy Meliany
3,
Syarifah Amaliah
1,
Hotsawadi
4 and
Amzul Rifin
5
1
Department of Economics, Faculty of Economic and Management, IPB University, Bogor 16680, Indonesia
2
International Center for Applied Finance and Economics, IRISERDS, IPB University, Bogor 16680, Indonesia
3
Program Study of Agricultural Economics, IPB University, Bogor 16680, Indonesia
4
Department of Development Economics, Mulawarman University, Samarinda 75119, Indonesia
5
Department of Agribusiness, Faculty of Economic and Management, IPB University, Bogor 16680, Indonesia
*
Author to whom correspondence should be addressed.
Economies 2025, 13(7), 199; https://doi.org/10.3390/economies13070199
Submission received: 18 May 2025 / Revised: 16 June 2025 / Accepted: 3 July 2025 / Published: 9 July 2025
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Abstract

Agriculture is the primary sector sustaining the Indonesian economy. However, appropriate policies are also required to support the service sector. Therefore, this study aims to analyze two central policies: the impact of trade openness and the role of the service sector on agriculture and agro-industry in Indonesia. A Computable General Equilibrium (CGE) model with 2016 input–output tables cover 141 regions and 65 sectors based on the Global Trade Analysis Project (GTAP) Version 10 database. The results show that trade openness in the services sector significantly improves the performance and quality of service provision. The improved performance of the services sector will, in turn, encourage increased production in the agricultural and agro-industrial sectors, which rely heavily on service inputs in the production process. This suggests that trade openness in the services sector is important to sustain the performance of the agricultural sector.
Keywords: trade on services; computable general equilibrium (CGE) model; international trade; agricultural and agroindustry trade on services; computable general equilibrium (CGE) model; international trade; agricultural and agroindustry

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MDPI and ACS Style

Widyastutik; Meliany, B.S.; Amaliah, S.; Hotsawadi; Rifin, A. Linking Global CGE Models and Sectoral Analysis to Evaluate the Impact of Trade Openness in Service Sector Towards Indonesia Agricultural and Agroindustry. Economies 2025, 13, 199. https://doi.org/10.3390/economies13070199

AMA Style

Widyastutik, Meliany BS, Amaliah S, Hotsawadi, Rifin A. Linking Global CGE Models and Sectoral Analysis to Evaluate the Impact of Trade Openness in Service Sector Towards Indonesia Agricultural and Agroindustry. Economies. 2025; 13(7):199. https://doi.org/10.3390/economies13070199

Chicago/Turabian Style

Widyastutik, Birka Septy Meliany, Syarifah Amaliah, Hotsawadi, and Amzul Rifin. 2025. "Linking Global CGE Models and Sectoral Analysis to Evaluate the Impact of Trade Openness in Service Sector Towards Indonesia Agricultural and Agroindustry" Economies 13, no. 7: 199. https://doi.org/10.3390/economies13070199

APA Style

Widyastutik, Meliany, B. S., Amaliah, S., Hotsawadi, & Rifin, A. (2025). Linking Global CGE Models and Sectoral Analysis to Evaluate the Impact of Trade Openness in Service Sector Towards Indonesia Agricultural and Agroindustry. Economies, 13(7), 199. https://doi.org/10.3390/economies13070199

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