Proceedings of the 2nd Social and Humaniora Research Symposium (SoRes 2019)

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Can Trade Integration Lead to Economic Development Convergence?

Authors
Ansofino Ansofino, Zusmelia Zusmelia, Lovely Dwinda Dahen, Yolamanlinda Yolamanlinda
Corresponding Author
Ansofino Ansofino
Available Online 3 March 2020.
DOI
10.2991/assehr.k.200225.105How to use a DOI?
Keywords
trade integration, principal component analysis, convergence economy
Abstract

The main focus of this research is to analyse the integration of Indonesia’s rubber trade with countries in the ASEAN region and how this trade integration affects the convergence of development. The analysis method used is the principal analysis method that measures the integration of Indonesia’s rubber trade with the ASEAN region, and the fixed effect method approach to examine the impact of trade integration on regional economic development convergence. The results showed that the greater integration of Indonesia’s rubber trade with ASEAN countries was marked by the principal value of its component analysis, which grew from 1989 to 2017. Increased integration of this rubber trade with the ASEAN region is also very dependent on regional and global economic conditions, when regional and global economies experience a decline, the intensity of Indonesia’s rubber trade also fluctuates towards decreasing. Changes in economic progress shown by changes in the value of GDP greatly affect the strength of integration of Indonesia’s rubber trade with the country concerned, changes in the value of GDP of rubber export destination countries have led to the convergence of Indonesia’s economy with Singapore, Thailand and Vietnam, and experienced divergence with Malaysia and the Philippines.

Copyright
© 2020, 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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Volume Title
Proceedings of the 2nd Social and Humaniora Research Symposium (SoRes 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
3 March 2020
ISBN
10.2991/assehr.k.200225.105
ISSN
2352-5398
DOI
10.2991/assehr.k.200225.105How to use a DOI?
Copyright
© 2020, 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/).

Cite this article

risenwbib
TY  - CONF
AU  - Ansofino Ansofino
AU  - Zusmelia Zusmelia
AU  - Lovely Dwinda Dahen
AU  - Yolamanlinda Yolamanlinda
PY  - 2020
DA  - 2020/03/03
TI  - Can Trade Integration Lead to Economic Development Convergence?
BT  - Proceedings of the 2nd Social and Humaniora Research Symposium (SoRes 2019)
PB  - Atlantis Press
SP  - 485
EP  - 489
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200225.105
DO  - 10.2991/assehr.k.200225.105
ID  - Ansofino2020
ER  -