Argue that Indonesian liberalization from 1991 to 2000 raised productivity by permitting native firms a higher choice of intermediate inputs. Show that related properties also hold in a superbly competitive Ricardian commerce mannequin following Eaton & Kortum with labor mobility and external economies of scale…. And because natives might resist labor market competition by shifting away (Borjas et al. 1997, Borjas 2006)….
