Patterns And Determinants Of Intra-Industry Trade: Case For Indonesia And Its Trading Partner Under Regional Comprehensive Economic Partnership (RCEP) Framework

This study analyzes the patterns and determinants of intra-industry trade (IIT) during the period 2010-2017 between Indonesia and trading partner countries under Regional Comprehensive Economic Partnership (RCEP), consists of Malaysia, Singapore, Thailand, Vietnam, Philippines, Cambodia, China, Japa...

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Bibliographic Details
Main Authors: Rossanto Dwi Handoyo, -, MARETHA ROSELINE SYAHNIE, 041511133102
Format: Article PeerReviewed
Language:English
Indonesian
English
Indonesian
Published: International Research Association for Talent Development and Excellence (IRATDE) 2020
Subjects:
Online Access:https://repository.unair.ac.id/117644/1/18-Artikel_RossantoDH_Patterns-and-Diterminants.pdf
https://repository.unair.ac.id/117644/2/18-PeerReview_RossantoDH.pdf
https://repository.unair.ac.id/117644/3/18-Similarity_RossantoDH_Patterns-and-Diterminants.pdf
https://repository.unair.ac.id/117644/6/RossantoDH_KesesuaianBidangIlmu-18.pdf
https://repository.unair.ac.id/117644/
http://www.iratde.com/index.php/jtde/article/view/1595
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Institution: Universitas Airlangga
Language: English
Indonesian
English
Indonesian
Description
Summary:This study analyzes the patterns and determinants of intra-industry trade (IIT) during the period 2010-2017 between Indonesia and trading partner countries under Regional Comprehensive Economic Partnership (RCEP), consists of Malaysia, Singapore, Thailand, Vietnam, Philippines, Cambodia, China, Japan, South Korea, India, Australia and New Zealand. The analyzes divided into three groups which are primary product, manufacture, and total commodity based on Standard International Trade Classification (SITC). The Grubel-Lloyd Index is used to calculate intra-industry trade and the Generalized Method of Moments (GMM) method is used to analyze dynamic panel data. The results showed that trade patterns were dominated by intra-industry trade compared to inter-industry trade. Determinants in the form of average Gross Domestic Product (GDP) has a significant positive effect in primary product and manufacturing IIT but has negative effect in total IIT. Distance has a significant negative effect on primary product and manufacturing IIT but has a positive effect in total IIT. Research & Development (R&D) has a significant positive effect on IIT in all groups. Foreign Direct Investment (FDI) has a significant negative effect on primary product and manufacturing groups but has a positive effect on overall total IIT.