Analysis Economic Integration Between Indonesia and ASEAN Countries

International Journal of Economics and Management Studies
© 2021 by SSRG - IJEMS Journal
Volume 8 Issue 6
Year of Publication : 2021
Authors : Devina Octarrum, I Wayan Suparta, Arivina Ratih
pdf
How to Cite?

Devina Octarrum, I Wayan Suparta, Arivina Ratih, "Analysis Economic Integration Between Indonesia and ASEAN Countries," SSRG International Journal of Economics and Management Studies, vol. 8,  no. 6, pp. 1-5, 2021. Crossref, https://doi.org/10.14445/23939125/IJEMS-V8I6P101

Abstract:

This research aims to analyze economic integration between Indonesia and ASEAN countries in terms of Indonesian exports from 2009 to 2019. The testing method used is the economic gravity model, where this model is commonly used to analyze bilateral trade integration between the countries that carry out trade cooperation, as a form of trade freedom. By using the Gross Domestic Product (GDP) ASEAN countries and Indonesia, population ASEAN countries and Indonesia, exchange rate and distance as variables.
The results show that the GDP variable for Indonesia, the GDP of ASEAN countries, the population of Indonesia and the population of ASEAN countries have a possitive and significant effects on Indonesia’s exports to ASEAN countries. Meanwhile, the exchange rate and economic distance have a negative and significant effect on Indonesia’s exports to ASEAN countries.

Keywords:

integration, gravity economic, export

References:

[1] A. Sebayang, K. Dianta, ‘Dampak Integrasi Ekonom ASEAN Terhadap Perdagangan Indonesia Pada Sektor Kendaraan Roda Empat’, Econosains Jurnal Online Ekonomi Dan Pendidikan, 9.2 (2011), 119–31 <https://doi.org/10.21009/econosains.0092.03>
[2] Aprilia, G. T., & Handoyo, R. D., (2019), Impact of Trade Creation and Trade Diversion in ASEAN-Japan Comprehensive Economic Partnership (AJCEP). JDE (Journal of Developing Economies), 4(02), 99-108
[3] Amin, Ruzita Mohd, Economic Integration Among ASEAN Countries : Evidence from Gravity Model International Islamic University Malaysia, 40.40 (2009)
[4] Balassa, Bela, The Theory of Economic Integration: An Introduction, The European Union, (1994), 125–37 <https://doi.org/10.1007/978-1-349-23984-9_15>
[5] Chaney, Thomas, The Gravity Equation in International Trade: An Explanation, Journal of Political Economy, 126.1 (2018), 150–77 <https://doi.org/10.1086/694292>
[6] Dao, Ngoc Tien, Van Nho Pham, and Quang Hung Doan, Analyzing the Determinants of Services Trade Flow between Vietnam and European Union: Gravity Model Approach, MPRA Paper, 63982.5 (2015), 1–25 <https://mpra.ub.uni-muenchen.de/63982/1/MPRA_paper_63982.pdf>
[7] Dinh, Thi Thanh Binh, Viet Duong Nguyen, and Manh Cuong Hoang, Applying Gravity Model To Analyze, Forum for Research in International Trade, (2011), 1–24
[8] Firmalino, Anna Floresca F., and Jefferson A. Arapoc, Development Gaps in the ASEAN: A Comparison of the ASEAN6 and CLMN Using Gravity Models of Trade, International Academy of Global Business and Trade, 12.2 (2016), 43–51 <https://doi.org/10.20294/jgbt.2016.12.2.43>
[9] Gujarati, Damodar N. Dasar-dasar Ekonometrika. Penerbit Salemba Empat. Jakarta, (2013)
[10] Krugman, Paul R. Obstfeld, M. dan Melitz, Marc J. International Trade : Theory and Policy 11th Edition. Global Edition. Pearson Education, (2012)
[11] Lee, Fukunari Kimura and Hyun-Hoon, The Gravity Equation in International Trade in Services Author (s): Fukunari Kimura and Hyun-Hoon Lee Stable URL :Http://Www.Jstor.Org/Stable/40441082 The Gravity Equation in International Trade in Services’, Springer, 142.1 (2006) 92–121
[12] Martin, Ali, and Sugiarto Pramono, FAKTOR-FAKTOR PENDORONG INTEGRASI REGIONAL : Studi Perbandingan Uni Eropa Dan ASEAN, Spektrum, 8.1 (2011) 25–43
[13] Purnama, Florentin Anggraini, Aufa Numan Fadhilah Rudiawan, Ahmad Rizqita Raharja, and Sparisoma Viridi, Menerapkan Gravity Model Untuk Menganalisa Aktivitas Dagang Indonesia, Prosiding SKF, (2017) 205–11
[14] R. M. Amin, Economic Integration Among ASEAN Countries : Evidence from Gravity Model International Islamic University Malaysia, 40(40) (2009).
[15] Suryanta, Barli, Aplikasi Rejim Persamaan Model Gravitasi Yang Telah Dirubah Pada Kasus Dinamika Arus Perdagangan Indonesia Dengan Mitra Dagang Dari Asean, Buletin Ekonomi Moneter Dan Perbankan, 15.2 (2012), 57–76 https://doi.org/10.21098/bemp.v15i2.62
[16] Shepherd, Ben. The Gravity Model of International Trade : A User Guide. Economic and Social Commision for the Asia and the Pacific. United Nation, (2013).
[17] Tarigan, Robinson. Ekonomi Regional. Teori dan Aplikasi. Jakarta. Bumi Aksara, (2005).
[18] Tri wahyudi, setyo, and Riyandi Saras Anggita, ‘The Gravity Model of Indonesian Bilateral Trade’, International Journal of Social and Local Economic Governance, 1.2 (2015), 153–56 <https://doi.org/10.21776/ub.ijleg.2015.001.02.9>
[19] Trung Kien, Nguyen, ‘Gravity Model by Panel Data Approach: An Empirical Application with Implications for the ASEAN Free Trade Area’, Asean Economic Bulletin, 26.3 (2009), 266–77 <https://doi.org/10.1355/ae26-3c>
[20] Widarjono, Agus. Ekonometrika Pengantar dan Aplikasinya Eviews. UPP STIM YKPN: Yogyakarta, (2013).
[21] Yang, Shanping, and Inmaculada Martinez-Zarzoso, A Panel Data Analysis of Trade Creation and Trade Diversion Effects: The Case of ASEAN-China Free Trade Area, China Economic Review, 29 (2014), 138–51 https://doi.org/10.1016/j.chieco.2014.04.002