Summary: | This paper aims to analyze the volume of Indonesia�s trade with its other
ASEAN member countries, especially after the implementation of ASEAN Free Trade
Area (AFTA). In particular, this paper uses the gravity model of trade to estimate the
effect of implementation of AFTA. The ordinary least square, fixed effect method,
random effect method, and Hausman�Taylor will be used to analyze panel data of five
ASEAN member countries from year 1980 to 2009. The estimation shows that the
implementation of AFTA is not determinant of Indonesia�s trade with other ASEAN
member countries.
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