Can Trade Integration Lead to Economic Development Convergence?
- 10.2991/assehr.k.200225.105How to use a DOI?
- trade integration, principal component analysis, convergence economy
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.
- © 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
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 -