Patterns and Determinants of Intra-Industry Trade Between Indonesia and It’s Trading Partner Countries

This study discussed about the patterns and determinants that influenced the intra-industry trade between Indonesia and its trading partner countries, such as China, Japan, USA, South Korea and Singapore during 2004 to 2014. This study used an index of Grubel-Lloyd from four categories of manufactur...

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Main Author: Farah Choirun Nisa
Format: Article
Language:English
Published: Departemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis Universitas Airlangga 2017-09-01
Series:JDE (Journal of Developing Economies)
Subjects:
Online Access:https://e-journal.unair.ac.id/JDE/article/view/4663
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author Farah Choirun Nisa
author_facet Farah Choirun Nisa
author_sort Farah Choirun Nisa
collection DOAJ
description This study discussed about the patterns and determinants that influenced the intra-industry trade between Indonesia and its trading partner countries, such as China, Japan, USA, South Korea and Singapore during 2004 to 2014. This study used an index of Grubel-Lloyd from four categories of manufacturing industry SITC 5-8 Rev. 3, 2 digits. In addition, this study also examined the determinants of IIT using panel data regression. Cross section in this study was between Indonesia with each trading partner countries (China, Japan, USA, South Korea and Singapore) and with its time series is 2004 to 2014. The results showed that IIT between Indonesia with each trading partner countries is high. Japan has the highest IIT among the other trading partner countries. The distance variable and the difference in GDP per capita did not affect the IIT. The average GDP variable has a positive and significant effect on the IIT, while the differences in value added per establishment at industry level has a negative effect on IIT. Keywords: Intra-Industry Trade, International Trade, Manufacture Industry JEL: F14, L10
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publisher Departemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis Universitas Airlangga
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spelling doaj.art-9bc221e042eb4791b5ad229aee8420732022-12-22T04:13:46ZengDepartemen Ilmu Ekonomi Fakultas Ekonomi dan Bisnis Universitas AirlanggaJDE (Journal of Developing Economies)2541-10122528-20182017-09-0121273710.20473/jde.v2i1.46633721Patterns and Determinants of Intra-Industry Trade Between Indonesia and It’s Trading Partner CountriesFarah Choirun Nisa0https://orcid.org/0000-0002-0750-408XFaculty of Economics and Business, Universitas AirlanggaThis study discussed about the patterns and determinants that influenced the intra-industry trade between Indonesia and its trading partner countries, such as China, Japan, USA, South Korea and Singapore during 2004 to 2014. This study used an index of Grubel-Lloyd from four categories of manufacturing industry SITC 5-8 Rev. 3, 2 digits. In addition, this study also examined the determinants of IIT using panel data regression. Cross section in this study was between Indonesia with each trading partner countries (China, Japan, USA, South Korea and Singapore) and with its time series is 2004 to 2014. The results showed that IIT between Indonesia with each trading partner countries is high. Japan has the highest IIT among the other trading partner countries. The distance variable and the difference in GDP per capita did not affect the IIT. The average GDP variable has a positive and significant effect on the IIT, while the differences in value added per establishment at industry level has a negative effect on IIT. Keywords: Intra-Industry Trade, International Trade, Manufacture Industry JEL: F14, L10https://e-journal.unair.ac.id/JDE/article/view/4663intra-industry tradeinternational trademanufacture industry
spellingShingle Farah Choirun Nisa
Patterns and Determinants of Intra-Industry Trade Between Indonesia and It’s Trading Partner Countries
JDE (Journal of Developing Economies)
intra-industry trade
international trade
manufacture industry
title Patterns and Determinants of Intra-Industry Trade Between Indonesia and It’s Trading Partner Countries
title_full Patterns and Determinants of Intra-Industry Trade Between Indonesia and It’s Trading Partner Countries
title_fullStr Patterns and Determinants of Intra-Industry Trade Between Indonesia and It’s Trading Partner Countries
title_full_unstemmed Patterns and Determinants of Intra-Industry Trade Between Indonesia and It’s Trading Partner Countries
title_short Patterns and Determinants of Intra-Industry Trade Between Indonesia and It’s Trading Partner Countries
title_sort patterns and determinants of intra industry trade between indonesia and it s trading partner countries
topic intra-industry trade
international trade
manufacture industry
url https://e-journal.unair.ac.id/JDE/article/view/4663
work_keys_str_mv AT farahchoirunnisa patternsanddeterminantsofintraindustrytradebetweenindonesiaanditstradingpartnercountries