August 16, 2025Open Access

Measuring the role of trade in maintaining employment stability: evidence from Indonesia's experience

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Higher exports may lead to increased unemployment rates, while increased imports are shown to reduce unemployment in Indonesia.
The study analyzed annual data from 1991 to 2020 using a Vector Error Correction Model to explore trade's effects.
Significant findings suggest that enhancing exports and importing technology could improve employment stability.
The research advocates for policies focused on labor-intensive industries and technological imports to boost competitiveness.

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Analysis demonstrates how international trade affects unemployment rates in Indonesia, indicating pathways for economic development.

Hanafie Arie Sunaryo (2025) studied this question.

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