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Trade and Health: Evidence from Indonesia

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Authors

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Arianto Patunru

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Anzika

We investigate the effects of the food trade on health in Indonesia. In particular, we examine how calories from imported food affect individuals with different classes of body mass index (BMI) across Indonesia. We derived anthropometric information from two main datasets: the Indonesian Basic Health Research (Riskesdas) dataset and the Indonesian Family Life Survey. The food import data came from the Food and Agriculture Organization of the United Nations. Supporting datasets included the Indonesian Household Survey (Susenas), Labor Force Survey (Sakernas), and Village Potential Survey (Podes). We conducted instrumental variable estimations in long difference and stacked first difference data settings. Our mixed results do not lend themselves to a generalized conclusion. However, we observed a common thread across all estimations. First, we identified no negative effects of imported calories across all types of BMI. Second, the positive effects that we observed could be experienced by those with any type of BMI status, only at different magnitudes. As such, any future policy that aims to reduce BMI abnormalities (such as stunting or obesity) by limiting food imports might also negatively affect those with normal BMIs.

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