ABSTRACT The focus of this research is to know the effect of tariff policy of automobile demand before and after World Trade Organization (WTO). Analysis method used in this research is quantitative analysis with simultaneous model and estimated using Two Stage Least Square (TSLS) approach, and the next analysis is a test of hypothesis using partial and simultaneous test. Based on the result of the estimation, it can be concluded that the independent variable in the first model, car price and PDB per capita is positive and dummy variable of economic crisis is negative to Japanese automobile demand. And independent variable in the second model, demand and tariff (the first dummy) is positive but fuel price and tariff (the second and the third dummy) are negative to Japanese automobile price. In other words, the influence of tariff policy in 1980-1994 is positive, and those in 1995-1997 and 1998-2005 are negative to Japanese automobile demand.
Cite this paper
Tarmidi, D. (2014) The Effect Tariff Policy before and after WTO Agreement Signature to Sedan Made in Japan Demand in Indonesia. Open Journal of Applied Sciences, 4, 176-183. doi: 10.4236/ojapps.2014.44018.
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