— Firms venture abroad with a view to gaining many benefits, including revenue growth, above-normal returns, less revenue uncertainty, realization of economies of scale and scope, lower average cost of input, higher efficiency and enhanced competitiveness in domestic markets. This study investigates the impact of exporting on firm performance, with reference to Indonesian small and medium-sized enterprises (SMEs). The study uses primary data from the survey on 271 exporting SMEs in seven provinces in Jawa-Bali Region. The results show that SMEs experienced greatest performance improvement in product quality and least improvement in domestic sales after exporting. The results also showed that firm performance exhibits an inverted U-shaped relationship with export intensity. The policy and academic implications of the findings are discussed.
{"title":"Impact of Export Activities on Firm Performance: The Case of Indonesian SMEs","authors":"M. D. Revindo, Devianto","doi":"10.2991/icot-19.2019.48","DOIUrl":"https://doi.org/10.2991/icot-19.2019.48","url":null,"abstract":"— Firms venture abroad with a view to gaining many benefits, including revenue growth, above-normal returns, less revenue uncertainty, realization of economies of scale and scope, lower average cost of input, higher efficiency and enhanced competitiveness in domestic markets. This study investigates the impact of exporting on firm performance, with reference to Indonesian small and medium-sized enterprises (SMEs). The study uses primary data from the survey on 271 exporting SMEs in seven provinces in Jawa-Bali Region. The results show that SMEs experienced greatest performance improvement in product quality and least improvement in domestic sales after exporting. The results also showed that firm performance exhibits an inverted U-shaped relationship with export intensity. The policy and academic implications of the findings are discussed.","PeriodicalId":229902,"journal":{"name":"Proceedings of the International Conference on Trade 2019 (ICOT 2019)","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127483924","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Over the past decade, there have been fluctuations in the global price of CPO. These variations in global CPO price are likely to affect the local CPO price as well. To overcome this, the Indonesian government has implemented an export tax on CPO in order to maintain stability in the business of the CPO producers. The aims of this research are to assess the market integration and the price transmission between the international CPO market and the domestic CPO market of Indonesia as well as the effects of the Indonesian export tax on the domestic and on the international prices. The analysis uses 592 weekly prices from January 2005 to May 2017 and estimation of Error Correction Model as an analysis method. The results of analysis show that the domestic CPO market of Indonesia is integrated with the international market. The domestic CPO market in Indonesia responds to price fluctuations in international market. In addition, although the imposition of the export tax of CPO in Indonesia slightly reduces instability of the domestic CPO price, the overall influence is still small. It can be inferred that the policy is effective to increase government revenue as a fiscal instrument at the expanse of oil palm farmers and producers of CPO. In practice, even though the policy maker has attempted to reduce the dependency of the Indonesian CPO producers on the world market by creating a demand market, but the Indonesian government still need to optimize the policy under the new format of the export tax of CPO. Keywords— CPO, ECM, Export Tax, Market Integration, Price Transmission
{"title":"Price Transmission in International Crude Palm Oil Markets: The Effects of Export Tax of Indonesia","authors":"Immanuel Manurung, B. Bruemmer, T. Kopp","doi":"10.2991/icot-19.2019.15","DOIUrl":"https://doi.org/10.2991/icot-19.2019.15","url":null,"abstract":"Over the past decade, there have been fluctuations in the global price of CPO. These variations in global CPO price are likely to affect the local CPO price as well. To overcome this, the Indonesian government has implemented an export tax on CPO in order to maintain stability in the business of the CPO producers. The aims of this research are to assess the market integration and the price transmission between the international CPO market and the domestic CPO market of Indonesia as well as the effects of the Indonesian export tax on the domestic and on the international prices. The analysis uses 592 weekly prices from January 2005 to May 2017 and estimation of Error Correction Model as an analysis method. The results of analysis show that the domestic CPO market of Indonesia is integrated with the international market. The domestic CPO market in Indonesia responds to price fluctuations in international market. In addition, although the imposition of the export tax of CPO in Indonesia slightly reduces instability of the domestic CPO price, the overall influence is still small. It can be inferred that the policy is effective to increase government revenue as a fiscal instrument at the expanse of oil palm farmers and producers of CPO. In practice, even though the policy maker has attempted to reduce the dependency of the Indonesian CPO producers on the world market by creating a demand market, but the Indonesian government still need to optimize the policy under the new format of the export tax of CPO. Keywords— CPO, ECM, Export Tax, Market Integration, Price Transmission","PeriodicalId":229902,"journal":{"name":"Proceedings of the International Conference on Trade 2019 (ICOT 2019)","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115099214","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
At present, the world economy is in uncertainty. One reason is that two economically large countries, the United States (US) and China are in conflict and beat the drums of trade war. This is indicated by the policy of US applying tariffs on a number of Chinese products, and then responded very quickly by China by implementing a reply tariff. The aim of this study is to analyze the economic consequences of the USChina trade war for Indonesia and Indonesia's strategies to respond to the trade war. The analytical method used is the Global Trade Analysis Project (GTAP) model. The results of the analysis show that the consequences of the US-China trade war on the found that trade wars between the US and China had an impact on the decline in the total output of goods produced by the US and China by 3.91% and 2.67% respectively. But the economic growth (PDB) of the US and China will be corrected by 0.08% and 0.66% respectively. Exports are still affected by -0.24% with greater implications. It means Indonesia has not been able to take advantage of the situation as a source of economic growth (GDP) projected to only increase by 0.01%. This means that Indonesia also needs to improve, so that investment in the real sector continues to flow profusely even though the China-US trade war has not been completed. The recommendation suggested that in the short-term strategies that need to be done are increasing export competitiveness, encouraging export-oriented industrial productivity, expanding and strengthening domestic and world markets, and controlling the amount of imports. In the longterm strategies include the need to improve the quality of human resources in the trade and industry sectors, utilization of the results of research and development, and infrastructure development is right on target for increased productivity. Keywords—economic impacts, strategies, US-China trade war, GTAP analysis
{"title":"The Economic Consequences and Strategies of the US-China Trade War on Indonesia: A GTAP Simulation Analysis","authors":"Muhammad Rizal Taufikurahman, A. Firdaus","doi":"10.2991/icot-19.2019.22","DOIUrl":"https://doi.org/10.2991/icot-19.2019.22","url":null,"abstract":"At present, the world economy is in uncertainty. One reason is that two economically large countries, the United States (US) and China are in conflict and beat the drums of trade war. This is indicated by the policy of US applying tariffs on a number of Chinese products, and then responded very quickly by China by implementing a reply tariff. The aim of this study is to analyze the economic consequences of the USChina trade war for Indonesia and Indonesia's strategies to respond to the trade war. The analytical method used is the Global Trade Analysis Project (GTAP) model. The results of the analysis show that the consequences of the US-China trade war on the found that trade wars between the US and China had an impact on the decline in the total output of goods produced by the US and China by 3.91% and 2.67% respectively. But the economic growth (PDB) of the US and China will be corrected by 0.08% and 0.66% respectively. Exports are still affected by -0.24% with greater implications. It means Indonesia has not been able to take advantage of the situation as a source of economic growth (GDP) projected to only increase by 0.01%. This means that Indonesia also needs to improve, so that investment in the real sector continues to flow profusely even though the China-US trade war has not been completed. The recommendation suggested that in the short-term strategies that need to be done are increasing export competitiveness, encouraging export-oriented industrial productivity, expanding and strengthening domestic and world markets, and controlling the amount of imports. In the longterm strategies include the need to improve the quality of human resources in the trade and industry sectors, utilization of the results of research and development, and infrastructure development is right on target for increased productivity. Keywords—economic impacts, strategies, US-China trade war, GTAP analysis","PeriodicalId":229902,"journal":{"name":"Proceedings of the International Conference on Trade 2019 (ICOT 2019)","volume":"6 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124568136","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The current global trade landscape is changing rapidly with the escalating US-China trade war, technological disruption, and changing global trade pattern. This has raised question on whether the current multilateral framework is adept to these new issues, and what are the developing countries’ best policy response in facing these challenges. This paper provides the background of the changing global trade landscape and suggests that countries shall take a three-pronged approach: unilateral reforms, regional partnership, and strengthening multilateral trading system. Keywords—Trade War, WTO Reform, Multilateral Trading System
{"title":"Changing Global Trade Landscape: Developing Country Perspective","authors":"M. Pangestu","doi":"10.2991/icot-19.2019.45","DOIUrl":"https://doi.org/10.2991/icot-19.2019.45","url":null,"abstract":"The current global trade landscape is changing rapidly with the escalating US-China trade war, technological disruption, and changing global trade pattern. This has raised question on whether the current multilateral framework is adept to these new issues, and what are the developing countries’ best policy response in facing these challenges. This paper provides the background of the changing global trade landscape and suggests that countries shall take a three-pronged approach: unilateral reforms, regional partnership, and strengthening multilateral trading system. Keywords—Trade War, WTO Reform, Multilateral Trading System","PeriodicalId":229902,"journal":{"name":"Proceedings of the International Conference on Trade 2019 (ICOT 2019)","volume":"107 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123235044","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Global competition requires high speed, accuracy, creativity and consistency to win business through strengthening optimal competitiveness. Choosing the right business strategy create effective business achievements to be able to compete in the face of uncertain and turbulence economic conditions. This study empirically investigates important role of human capital, infrastructure, supply chain, and technology on company's business strategy in industrial estate and its impact on strengthening competitiveness of manufacturing industry. Authors conducted survey of companies in industrial estate to test hypotheses and apply survey analysis techniques using structural equation modeling. Results of this study concluded that human capital, infrastructure, supply chain, and technology have positive influence on business strategies and have positive impact on competitiveness of manufacturing industries, especially those located in industrial estates. In addition, importance of choosing right business strategy greatly determines how much this business has superior competitiveness compared to its business competitors. This research is expected to be used as suggestion and reference for business units and manufacturing industries to be used as one of considerations in the development of companies in industrial estates that are being developed widely, especially outside Java by government to get best competitiveness. Keywords—business strategy, competitiveness, supply chain, human capital, industrial estate
{"title":"Effective Business Strategy: Key to Winning Business Competition in Industrial Estate","authors":"Sri Sarjana, N. Khayati","doi":"10.2991/icot-19.2019.12","DOIUrl":"https://doi.org/10.2991/icot-19.2019.12","url":null,"abstract":"Global competition requires high speed, accuracy, creativity and consistency to win business through strengthening optimal competitiveness. Choosing the right business strategy create effective business achievements to be able to compete in the face of uncertain and turbulence economic conditions. This study empirically investigates important role of human capital, infrastructure, supply chain, and technology on company's business strategy in industrial estate and its impact on strengthening competitiveness of manufacturing industry. Authors conducted survey of companies in industrial estate to test hypotheses and apply survey analysis techniques using structural equation modeling. Results of this study concluded that human capital, infrastructure, supply chain, and technology have positive influence on business strategies and have positive impact on competitiveness of manufacturing industries, especially those located in industrial estates. In addition, importance of choosing right business strategy greatly determines how much this business has superior competitiveness compared to its business competitors. This research is expected to be used as suggestion and reference for business units and manufacturing industries to be used as one of considerations in the development of companies in industrial estates that are being developed widely, especially outside Java by government to get best competitiveness. Keywords—business strategy, competitiveness, supply chain, human capital, industrial estate","PeriodicalId":229902,"journal":{"name":"Proceedings of the International Conference on Trade 2019 (ICOT 2019)","volume":"4 2","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114022154","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
K. Jati, Wibowo Kurniawan, A. Mardiansyah, M. Fawaiq, R. A. Nugroho, Deky Paryadi
—Rubber and palm oil are the two main export commodities that contribute to economic development in Indonesia. Specific trade policy has to be implemented when export commodity prices fluctuating or increasing or decreasing rapidly in the short period of time. The research purpose is to write a trade policy evaluation on rubber and palm oil using ARMA-ARCH/GARCH and structural time-series model. This study shows that price movement aspect is very important to evaluate the trade policy. The results of the analysis using Autoregressive and Moving Average and Autoregressive Conditional Heteroskedasticity/Generalized Autoregressive Conditional Heteroskedasticity (ARMA-ARCH/GARCH) indicate that past price factors can be used to predict future prices. The Structural Time-Series Model (STSM) shows that the price of rubber and palm oil in 2020 and 2021 is expected to be relatively stable. The relevant trade authorities need to maximize the public services related to the price predictions and upcoming policy in order to maintain export stability in the short and long terms so that it can be utilized to the greatest extent possible for development of Indonesia.
{"title":"Trade Policy Evaluation on Rubber and Palm Oil","authors":"K. Jati, Wibowo Kurniawan, A. Mardiansyah, M. Fawaiq, R. A. Nugroho, Deky Paryadi","doi":"10.2991/icot-19.2019.39","DOIUrl":"https://doi.org/10.2991/icot-19.2019.39","url":null,"abstract":"—Rubber and palm oil are the two main export commodities that contribute to economic development in Indonesia. Specific trade policy has to be implemented when export commodity prices fluctuating or increasing or decreasing rapidly in the short period of time. The research purpose is to write a trade policy evaluation on rubber and palm oil using ARMA-ARCH/GARCH and structural time-series model. This study shows that price movement aspect is very important to evaluate the trade policy. The results of the analysis using Autoregressive and Moving Average and Autoregressive Conditional Heteroskedasticity/Generalized Autoregressive Conditional Heteroskedasticity (ARMA-ARCH/GARCH) indicate that past price factors can be used to predict future prices. The Structural Time-Series Model (STSM) shows that the price of rubber and palm oil in 2020 and 2021 is expected to be relatively stable. The relevant trade authorities need to maximize the public services related to the price predictions and upcoming policy in order to maintain export stability in the short and long terms so that it can be utilized to the greatest extent possible for development of Indonesia.","PeriodicalId":229902,"journal":{"name":"Proceedings of the International Conference on Trade 2019 (ICOT 2019)","volume":"73 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115923882","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Inter-island trade data becomes one of the bases to formulate policy recommendations to maintain price stability and reduce price disparity across regions in Indonesia. However, inter-island trade data still not well recorded and managed. The purpose of this study is to measure the performance of the inter-island trade data collection process by Ministry of Trade and to identify problems of data collection. Important Performance Analysis (IPA) is utilized to measure the performance of inter-island trade data collection and Likert Scale is used for problems identification. The study found that in inter-island trade data collection terms of importance is at the level of 3,25. While in terms of performance is at the level of 4,35. It can be interpreted that the level of performance is better than the level of importance, so in other words the process of inter-islands data collection is relatively effective. Meanwhile, the main problem in interisland trade data collection are the lack of coordination between Ministries/Agencies, the policy that has not been well socialized, and there is no comprehensive method of interisland trade data collection. For this reason, coordination and synchronization and further agreement is needed to develop a comprehensive inter-island trade database, and creating method of data collection. Keywords—Inter-island Trade, Database, Trade
{"title":"The Analysis of Inter-Island Trade Data Collection","authors":"D. Prabowo, Aditya Priantomo","doi":"10.2991/icot-19.2019.32","DOIUrl":"https://doi.org/10.2991/icot-19.2019.32","url":null,"abstract":"Inter-island trade data becomes one of the bases to formulate policy recommendations to maintain price stability and reduce price disparity across regions in Indonesia. However, inter-island trade data still not well recorded and managed. The purpose of this study is to measure the performance of the inter-island trade data collection process by Ministry of Trade and to identify problems of data collection. Important Performance Analysis (IPA) is utilized to measure the performance of inter-island trade data collection and Likert Scale is used for problems identification. The study found that in inter-island trade data collection terms of importance is at the level of 3,25. While in terms of performance is at the level of 4,35. It can be interpreted that the level of performance is better than the level of importance, so in other words the process of inter-islands data collection is relatively effective. Meanwhile, the main problem in interisland trade data collection are the lack of coordination between Ministries/Agencies, the policy that has not been well socialized, and there is no comprehensive method of interisland trade data collection. For this reason, coordination and synchronization and further agreement is needed to develop a comprehensive inter-island trade database, and creating method of data collection. Keywords—Inter-island Trade, Database, Trade","PeriodicalId":229902,"journal":{"name":"Proceedings of the International Conference on Trade 2019 (ICOT 2019)","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130734986","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Endah Ayu Ningsih, F. Hastiadi, Risna Triandhari, L. M. Christoffel, F. Budiarti
— On June 23, 2016 held a referendum which resulted decision that United Kingdom or Britain determined to exit the European Union membership that we call Brexit. The exit of UK will absolutely impact UK’s trade with its trading partner including Indonesia. In connection with this issue we conducted a study to evaluate the possibility for trade cooperation between Indonesia and the UK with assumption that UK had officially left the European Union. By having the Game Theory model, the best strategy for Indonesia is by forming FTA with UK. Meanwhile for UK, based on the simulation, the alternative in forming FTA with Indonesia is the dominant strategy with positive output. The trade cooperation implication is not too significant for UK, so to drive the trade cooperation must be initiated from Indonesia.
{"title":"The Possibility of Indonesia and United Kingdom to Form Free Trade Agreement After Brexit","authors":"Endah Ayu Ningsih, F. Hastiadi, Risna Triandhari, L. M. Christoffel, F. Budiarti","doi":"10.2991/icot-19.2019.3","DOIUrl":"https://doi.org/10.2991/icot-19.2019.3","url":null,"abstract":"— On June 23, 2016 held a referendum which resulted decision that United Kingdom or Britain determined to exit the European Union membership that we call Brexit. The exit of UK will absolutely impact UK’s trade with its trading partner including Indonesia. In connection with this issue we conducted a study to evaluate the possibility for trade cooperation between Indonesia and the UK with assumption that UK had officially left the European Union. By having the Game Theory model, the best strategy for Indonesia is by forming FTA with UK. Meanwhile for UK, based on the simulation, the alternative in forming FTA with Indonesia is the dominant strategy with positive output. The trade cooperation implication is not too significant for UK, so to drive the trade cooperation must be initiated from Indonesia.","PeriodicalId":229902,"journal":{"name":"Proceedings of the International Conference on Trade 2019 (ICOT 2019)","volume":"128 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132086032","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
As tariff is declining, Non-Tariff Measures (NTMs) become significantly important to supercede tariff role in protecting domestic industry. To overcome the negative impact of NTMs, some countries, including Indonesia, have been actively developing economic cooperations, so does . This study seeks to identify the most potential FTA/CEPA partners for Indonesia, from regulatory distance (RD) perspective. The study utilizes regulatory distance analysis on 11 Indonesian CEPA/FTA partners which are selected from certain criteria. Analysis shows that the regulatory distance between Indonesia and its main FTA/CEPA partners is small, it is between 0.003 – 0.132. The most potential Indonesia’s FTA/CEPA partners are from ASEAN countries such as Malaysia, Singapore, Thailand, and Vietnam. While the most potential partners from outside ASEAN countries are Pakistan and the USA. This is indicated by the similarity of NTM patterns at the product level as resulted from the regulatory distance analysis. It reveals a sort of common pattern of NTM regimes. Moreover, the results reveal that Indonesian regulatory structure is relatively different from the Philippines and Australia and these countries tend to be outlier. The regulatory structure of Japan, EU and Korea is relatively closer to Indonesia. Therefore, it is important for Indonesia to address NTMs issues when negoatiating its economic cooperation, in particular with Australia and the Philippines, through Mutual Recognition Agreement and Harmonisation of Standard. Keywords— Non-Tariff Measures (NTMs); Regulatory Distance Analysis; Free Trade Agreement
{"title":"Accounting for Regulatory Distance and Looking for the Most Potential Indonesia's FTA/CEPA Partners","authors":"Ernawati Munadi, A. Saputri","doi":"10.2991/icot-19.2019.18","DOIUrl":"https://doi.org/10.2991/icot-19.2019.18","url":null,"abstract":"As tariff is declining, Non-Tariff Measures (NTMs) become significantly important to supercede tariff role in protecting domestic industry. To overcome the negative impact of NTMs, some countries, including Indonesia, have been actively developing economic cooperations, so does . This study seeks to identify the most potential FTA/CEPA partners for Indonesia, from regulatory distance (RD) perspective. The study utilizes regulatory distance analysis on 11 Indonesian CEPA/FTA partners which are selected from certain criteria. Analysis shows that the regulatory distance between Indonesia and its main FTA/CEPA partners is small, it is between 0.003 – 0.132. The most potential Indonesia’s FTA/CEPA partners are from ASEAN countries such as Malaysia, Singapore, Thailand, and Vietnam. While the most potential partners from outside ASEAN countries are Pakistan and the USA. This is indicated by the similarity of NTM patterns at the product level as resulted from the regulatory distance analysis. It reveals a sort of common pattern of NTM regimes. Moreover, the results reveal that Indonesian regulatory structure is relatively different from the Philippines and Australia and these countries tend to be outlier. The regulatory structure of Japan, EU and Korea is relatively closer to Indonesia. Therefore, it is important for Indonesia to address NTMs issues when negoatiating its economic cooperation, in particular with Australia and the Philippines, through Mutual Recognition Agreement and Harmonisation of Standard. Keywords— Non-Tariff Measures (NTMs); Regulatory Distance Analysis; Free Trade Agreement","PeriodicalId":229902,"journal":{"name":"Proceedings of the International Conference on Trade 2019 (ICOT 2019)","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124710825","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Information and communications technology (ICT) would drive the acceleration of digitalization era, including dynamics of trade flow among ASEAN countries, both in low or high-tech also. Basically each country has different resources, and so why many factors must be known to be a winner. This aim of study was to analyze the impact of ICT existence on ASEAN trade flows. Panel data for 10 ASEAN countries for a period from 2012 to 2016 was employed to construct Gravity Model. To estimate that model, we applied Poisson Pseudo Maximum Likelihood (PPML). All data came from World Bank, WITS, CEPII, IMF, and ITU. The result showed that ICT has significantly positive impacts on both trade flow ASEAN market. If we elaborated in detail, according to (a) the sector, ICT in trade of hi-tech commodities was more attractive effort than low-tech commodities and (b) the existence, the adult literacy rate as ICT skills was more dominant factor influenced in trade flow among ASEAN countries compare ICT access and usage. Some policy recommendations were how to develop workers' skills, mitigation issue on digital economy, and develop domestic ICT industry. Keywords— ICT, ASEAN, trade, gravity model
{"title":"The Impact of Information and Communication Technology (ICT) on ASEAN Trade Flow","authors":"Iwan Hermawan, Eka Budiyanti, Edmira Rivani","doi":"10.2991/icot-19.2019.38","DOIUrl":"https://doi.org/10.2991/icot-19.2019.38","url":null,"abstract":"Information and communications technology (ICT) would drive the acceleration of digitalization era, including dynamics of trade flow among ASEAN countries, both in low or high-tech also. Basically each country has different resources, and so why many factors must be known to be a winner. This aim of study was to analyze the impact of ICT existence on ASEAN trade flows. Panel data for 10 ASEAN countries for a period from 2012 to 2016 was employed to construct Gravity Model. To estimate that model, we applied Poisson Pseudo Maximum Likelihood (PPML). All data came from World Bank, WITS, CEPII, IMF, and ITU. The result showed that ICT has significantly positive impacts on both trade flow ASEAN market. If we elaborated in detail, according to (a) the sector, ICT in trade of hi-tech commodities was more attractive effort than low-tech commodities and (b) the existence, the adult literacy rate as ICT skills was more dominant factor influenced in trade flow among ASEAN countries compare ICT access and usage. Some policy recommendations were how to develop workers' skills, mitigation issue on digital economy, and develop domestic ICT industry. Keywords— ICT, ASEAN, trade, gravity model","PeriodicalId":229902,"journal":{"name":"Proceedings of the International Conference on Trade 2019 (ICOT 2019)","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2019-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128597470","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：