INDONESIAN TRADE FLOWS: THE DETERMINANTS AND COMPARATIVE ADVANTAGE

This study applies three analyses for studying Indonesian trade. Gravity model is used to investigate the determinants of Indonesian trade flows. To examine the pattern of Indonesian comparative advantage from time to time, normalized revealed comparative advantage (NRCA) index is calculated. Indone...

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Main Authors: , Ririh Hidayah Lila Ratna Ningrum, , Prof. Okawa Masayuki
Format: Thesis
Published: [Yogyakarta] : Universitas Gadjah Mada 2013
Subjects:
ETD
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author , Ririh Hidayah Lila Ratna Ningrum
, Prof. Okawa Masayuki
author_facet , Ririh Hidayah Lila Ratna Ningrum
, Prof. Okawa Masayuki
author_sort , Ririh Hidayah Lila Ratna Ningrum
collection UGM
description This study applies three analyses for studying Indonesian trade. Gravity model is used to investigate the determinants of Indonesian trade flows. To examine the pattern of Indonesian comparative advantage from time to time, normalized revealed comparative advantage (NRCA) index is calculated. Indonesian trade potential analysis aims to provide an illustration about the condition of Indonesian trade with its partners. Panel data of forty largest Indonesian trade partners during the period 1995- 2011 is employed for the gravity model analysis of Indonesian trade flows. Dummy variables of free trade agreement (FTA), membership of the WTO and ASEAN, as well as Trade Freedom Index (TFI), are included in this research to capture Indonesia�s trade policy. The NRCA index proves that Indonesia has comparative advantage in low technology embedded commodities. The opposite fact is evident for high technology embedded products. This result can be considered as a sign for the Indonesian government to give their best effort for developing industry that produces high technology embedded products. The analysis of Indonesian unrealized trade potential shows that for export, Indonesia is under trade with thirteen countries. On the other hand, in the case of import, Indonesia is under trade with twenty countries, most of which are located in Europe.
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spelling oai:generic.eprints.org:1263512016-03-04T08:42:53Z https://repository.ugm.ac.id/126351/ INDONESIAN TRADE FLOWS: THE DETERMINANTS AND COMPARATIVE ADVANTAGE , Ririh Hidayah Lila Ratna Ningrum , Prof. Okawa Masayuki ETD This study applies three analyses for studying Indonesian trade. Gravity model is used to investigate the determinants of Indonesian trade flows. To examine the pattern of Indonesian comparative advantage from time to time, normalized revealed comparative advantage (NRCA) index is calculated. Indonesian trade potential analysis aims to provide an illustration about the condition of Indonesian trade with its partners. Panel data of forty largest Indonesian trade partners during the period 1995- 2011 is employed for the gravity model analysis of Indonesian trade flows. Dummy variables of free trade agreement (FTA), membership of the WTO and ASEAN, as well as Trade Freedom Index (TFI), are included in this research to capture Indonesia�s trade policy. The NRCA index proves that Indonesia has comparative advantage in low technology embedded commodities. The opposite fact is evident for high technology embedded products. This result can be considered as a sign for the Indonesian government to give their best effort for developing industry that produces high technology embedded products. The analysis of Indonesian unrealized trade potential shows that for export, Indonesia is under trade with thirteen countries. On the other hand, in the case of import, Indonesia is under trade with twenty countries, most of which are located in Europe. [Yogyakarta] : Universitas Gadjah Mada 2013 Thesis NonPeerReviewed , Ririh Hidayah Lila Ratna Ningrum and , Prof. Okawa Masayuki (2013) INDONESIAN TRADE FLOWS: THE DETERMINANTS AND COMPARATIVE ADVANTAGE. UNSPECIFIED thesis, UNSPECIFIED. http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=66574
spellingShingle ETD
, Ririh Hidayah Lila Ratna Ningrum
, Prof. Okawa Masayuki
INDONESIAN TRADE FLOWS: THE DETERMINANTS AND COMPARATIVE ADVANTAGE
title INDONESIAN TRADE FLOWS: THE DETERMINANTS AND COMPARATIVE ADVANTAGE
title_full INDONESIAN TRADE FLOWS: THE DETERMINANTS AND COMPARATIVE ADVANTAGE
title_fullStr INDONESIAN TRADE FLOWS: THE DETERMINANTS AND COMPARATIVE ADVANTAGE
title_full_unstemmed INDONESIAN TRADE FLOWS: THE DETERMINANTS AND COMPARATIVE ADVANTAGE
title_short INDONESIAN TRADE FLOWS: THE DETERMINANTS AND COMPARATIVE ADVANTAGE
title_sort indonesian trade flows the determinants and comparative advantage
topic ETD
work_keys_str_mv AT ririhhidayahlilaratnaningrum indonesiantradeflowsthedeterminantsandcomparativeadvantage
AT profokawamasayuki indonesiantradeflowsthedeterminantsandcomparativeadvantage