Analysis of Competitiveness and Factors Affecting Indonesia's Selected Commodity Exports to Developing Eight Countries (D-8)
DOI:
https://doi.org/10.32628/IJSRSET196621Keywords:
Competitiveness, EPD, Gravity Model, IIT, RCAAbstract
Indonesia's exports to major trading partners show a declining trend in recent years. So that market diversification is important so that exports do not fully depend on the main trading partners. Looking at the development of Indonesia's exports to the Developing Eight Countries (D-8), this region can become a potential market to increase exports. This study aimed to analyze the competitiveness of commodities, and the factors that affect Indonesia's commodity exports to (D-8). The analysis period from 2009 to 2018 uses Revealed Comparative Advantage (RCA), Intra Industry Trade (IIT), Export Dynamic Product (EPD), and Gravity Model using panel data regression. Based on the results of RCA and EPD analysis, Indonesian commodities are able to compete and occupy a variety of positions, namely the Rising Star, Falling Star, Lost Oportunity, and Retreat positions. The IIT results show that most of Indonesia's trade relations with D-8 member countries are one-way (No Integration). Factors that influence exports are, GDP, real exchange rates, commodity prices, economic distances with different results for each commodity.
References
- Abidin ISZ, Bakar NZA, Sahlan R. 2013. The Determinants of Exports between Malaysia and the OIC Member Countries: A Gravity Model Approach.Procedia Economics and Finance.5(1):12-19
- Arip MA, Feng TS, Yee LS. 2013. Assessing the Competitiveness of Malaysia and Indonesia Palm Oil Related Industry. World Review of Business Research. 3(4):138-145.
- Austria MS. 2004. The Pattern of Intra-ASEAN Trade in the Priority Goods Sectors, Final Main Report,3/006e:1-176.
- [BPS]. Central Bureau of Statistics. 2019. Laporan Perekonomian Indonesia 2018. Jakarta (ID):BPS
- Boansi david, OdilonKounagbelokonon Boris, Appah John 2014. Determinants of Agricultural Export Trade: Case of Fresh Pineaple Exports from Ghana. British Journal of Economics, Management & Trade. 4(11):1736-1754
- Esterhuizen D. 2006. Measuring and Analyzing Competitiveness in the Agribusiness Sector: Methodological and Analytical Framework. Pretoria (SA): University of Pretoria.
- Fakhrudin U. 2011. The Competitiveness of Indonesian Product in Trade Relationship with China. Buletin Ilmiah Litbang Perdagangan. Vol.5 No 2.
- [Kemendag] Indonesian Ministry of Trade. Various Publication [Internet]. [downloaded on March-May 2019]. Avaliable on: http://kemendag.go.id/
- Serin V, Civan A. 2008. Revealed Comparative Advantage and Competitivenes: A case study for Turkey towards the EU. Journal of Economics and Social Research .10 (2):25-21.
- Shuai C, Wang X. 2011. Comparative Advantages and Complementarity of the Sino-US Agricultural Trade: An Empirical Analysis. AGRIC ECON – CZECH. 57 (3): 118-131
- Siddique B, Rahul S, Shadana S. 2016. Australia-Thailand Trade; An Anaysis of competitiveness and effect of the bilateral FTA. The Journal of Developing Areas. Volume 50 No.5
- Stephenson, S.M. 1994. The Uruguay Round and Its Benefit to Indonesia. Ministry of Trade Republic of Indonesia. Jakarta
- Telambanua E.2012. Analisa determinan ekspor Provinsi Sumatera Utara: pendekatan gravity model. Quantitative Economics Journal.2(2):35-52
- [WITS] World Integrated Trade Solution. Various Publication [Internet]. Avaliable on: http:/wits.org/. [downloaded on May- Sepetember 2019].
Downloads
Published
Issue
Section
License
Copyright (c) IJSRSET
This work is licensed under a Creative Commons Attribution 4.0 International License.