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The Change of Comparative Advantage of Agricultural Activities in East Java Within the Context of Asean Economic Integration

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  • Esquivias, M.A.

Abstract

This paper analyses changes on agricultural trade patterns of East Java, Indonesia, versus six main ASEAN exporter countries. Based on the trade flow information, there are some dynamics of comparative advantage and export specialization from 2007 to 2013 in the 545 commodities comprising the agricultural sector. Products are mapped into four-different quadrants according to their level of comparative advantage and export specialization. Advantage-specialization appears to be important features of agro-trade for ASEAN countries because most of the growth in exports is under those competitive commodities. Little diversification towards new products has been found in the recent years. Gains appear to be larger than the losses due to international openness, while opportunities within the region have not been exploited. Agro-trade in the region still focuses towards extra-ASEAN and enjoys high levels of advantage- specialization in some key commodities. A large number of commodities were found to have little competition within ASEAN.

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  • Esquivias, M.A., 2017. "The Change of Comparative Advantage of Agricultural Activities in East Java Within the Context of Asean Economic Integration," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 9(1), March.
    • Handle: RePEc:ags:aolpei:262447
    DOI: 10.22004/ag.econ.262447
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    Cited by:

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    2. Esquivias, Miguel Angel & Purwono, Rudi & Sugiharti, Lilik & Heriqbaldi, Unggul & Handoyo, Rossanto Dwi, 2020. "Value Chains, Production Networks and Regional Integration: The Case of Indonesia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 54(1), pages 135-151.
    3. Rudi Purwono & Lilik Sugiharti & Rossanto Dwi Handoyo & Miguel Angel Esquivias, 2022. "Trade Liberalization and Comparative Advantage: Evidence from Indonesia and Asian Trade Partners," Economies, MDPI, vol. 10(4), pages 1-21, March.
    4. Lilik Sugiharti & Rudi Purwono & Miguel Angel Esquivias Padilla, 2020. "Analysis of determinants of Indonesian agricultural exports," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 2676-2695, June.
    5. Hoang, V. V. & Tran, K. T. & Tu, B. V. & Nguyen, V. N. & Nguyen, A. Q., 2017. "Agricultural Competitiveness of Vietnam by the RCA and the NRCA Indices, and Consistency of Competitiveness Indices," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 9(4).
    6. Junshi Li & Yao Pan, 2023. "EU and China’s comparative advantage, trade complementarity and trade specialization dynamics in agricultural products," Asia Europe Journal, Springer, vol. 21(3), pages 351-379, September.

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