INDONESIAN TRADE UNDER CHINA FREE TRADE AREA
This paper investigates the implementation of CAFTA (China-Asean Free Trade Area) on the international trade flows across Indonesia, China and the rest of ASEAN using a gravitation model. It finds the evidence that the influence of diversion and creation effects on China are significant, while the i...
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| Format: | Article |
| Language: | English |
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Universitas Islam Indonesia
2011-09-01
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| Series: | Economic Journal of Emerging Markets |
| Online Access: | https://journal.uii.ac.id/JEP/article/view/2326 |
| _version_ | 1811342285120471040 |
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| author | Tavi Supriana |
| author_facet | Tavi Supriana |
| author_sort | Tavi Supriana |
| collection | DOAJ |
| description | This paper investigates the implementation of CAFTA (China-Asean Free Trade Area) on the international trade flows across Indonesia, China and the rest of ASEAN using a gravitation model. It finds the evidence that the influence of diversion and creation effects on China are significant, while the influence of both effects on Indonesia are not significant. It also finds that the diversion effect, which leads to a decrease in society’s wealth, is greater than that of the creation effect. As a consequence, the gap across countries involved in the trade agreement is wider.
Keywords: CAFTA, gravitation model, diversion effect, creation effect
JEL classification numbers: F13, F14, F15
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| first_indexed | 2024-04-13T19:08:54Z |
| format | Article |
| id | doaj.art-289d0d50d20e48c8b3a90ce3ed2eaca6 |
| institution | Directory Open Access Journal |
| issn | 2086-3128 2502-180X |
| language | English |
| last_indexed | 2024-04-13T19:08:54Z |
| publishDate | 2011-09-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Economic Journal of Emerging Markets |
| spelling | doaj.art-289d0d50d20e48c8b3a90ce3ed2eaca62022-12-22T02:33:54ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2011-09-0132INDONESIAN TRADE UNDER CHINA FREE TRADE AREATavi SuprianaThis paper investigates the implementation of CAFTA (China-Asean Free Trade Area) on the international trade flows across Indonesia, China and the rest of ASEAN using a gravitation model. It finds the evidence that the influence of diversion and creation effects on China are significant, while the influence of both effects on Indonesia are not significant. It also finds that the diversion effect, which leads to a decrease in society’s wealth, is greater than that of the creation effect. As a consequence, the gap across countries involved in the trade agreement is wider. Keywords: CAFTA, gravitation model, diversion effect, creation effect JEL classification numbers: F13, F14, F15 https://journal.uii.ac.id/JEP/article/view/2326 |
| spellingShingle | Tavi Supriana INDONESIAN TRADE UNDER CHINA FREE TRADE AREA Economic Journal of Emerging Markets |
| title | INDONESIAN TRADE UNDER CHINA FREE TRADE AREA |
| title_full | INDONESIAN TRADE UNDER CHINA FREE TRADE AREA |
| title_fullStr | INDONESIAN TRADE UNDER CHINA FREE TRADE AREA |
| title_full_unstemmed | INDONESIAN TRADE UNDER CHINA FREE TRADE AREA |
| title_short | INDONESIAN TRADE UNDER CHINA FREE TRADE AREA |
| title_sort | indonesian trade under china free trade area |
| url | https://journal.uii.ac.id/JEP/article/view/2326 |
| work_keys_str_mv | AT tavisupriana indonesiantradeunderchinafreetradearea |