This paper simulates the economic impacts of import liberalization on agricultural and nonagricultural sectors usiug input-outputanalysis. Two simulations were carried: tariff liberalization for allagricultural sectors and nontariff liberalization for the paddy ricesector. While import substitutions were allowed for both simulations, the tariffication principle was adopted for the latter one.Two important empirical findings are found: (1) results from thefirst simulation show that liberalization will cause negative impactson output, income and employment to the basic agricultural sector,whereas positive or negative impacts are found for those sub-sectorsof the basic agricultural sector. Also, since positive effects on thoseindustrial and service sectors outweigh negative effects on the basicagricultural sector, the total effects to the whole economy are positive; (2) results from the second simulation indicate that under noimport substitution scenario, the impacts of liberalization of riceimportation will cause negative effects on the paddy rice sector,but yield positive contributions to other sectors of the economy.However, under a scenario where 3 of domestic rice consumptionsubstituted by imported rice, the proceeding negative effects on thepaddy rice sector will increase significantly such that the impact onthe basic agricultural sector become negative. Nevertheless, thetotal effects to the whole economy are still positive.