Indonesia - The Trans Pacific Partnership Trade Potential

DOI

10.2991/icied-17.2018.35How to use a DOI?

Keywords

TPP; gravity model; trade potential

Abstract

This study investigates Indonesia's trade potential with the TPP economies. Covering 23 years (1992-2014) unbalanced panel data, this paper utilizes a gravity model where the trade potential is calculated from the estimated equation using the ratio of predicted and actual trade (P/A), and the speed of convergence (SC) method. Indonesia's trade potential is divided into agricultural and industrial goods; a comparison is made between Indonesia's trade with each of the TPP, ASEAN, and ASEAN+6 in turn. According to the ratio (P/A), the highest potential trading partner is Mexico; while based on the SC method, Indonesia has convergence in trade with Peru in both product groups. In the context of speed of convergence, Indonesia has the shortest time to reach its potential trade with Peru; and the longest time to reach convergence is Vietnam, in the agricultural sector

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Juwita Puteri Nuraisyah
PY  - 2017/12
DA  - 2017/12
TI  - Indonesia - The Trans Pacific Partnership Trade Potential
BT  - Proceedings of the 2nd International Conference on Indonesian Economy and Development (ICIED 2017)
PB  - Atlantis Press
SP  - 185
EP  - 189
SN  - 2352-5398
UR  - https://doi.org/10.2991/icied-17.2018.35
DO  - 10.2991/icied-17.2018.35
ID  - PuteriNuraisyah2017/12
ER  -