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Analysing Indonesia’s Bilateral Trade and Investment Network

In: Indonesia's International Economic Strategies

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  • Kiki Verico

    (University of Indonesia)

Abstract

This chapter adopts and adapts Verico’s method (2020) to calculate the strength of Indonesia's economic relations with its major trading partners. This method provides 15 indexes from 17 macroeconomic indicators entitled the V-Index. They reflect the economic relationship power between Indonesia and its trading partner bilaterally and indicate these patterns either in trade or in long-run investment. The first is export or import flow form; the second is either FDI inflows or outflows form. This pattern can show the production network direction pattern between Indonesia and its trading partner either Indonesia becomes its production network or the opposite. Compared to these two previous studies, the novelty of this chapter is that it reaches before and amidst the pandemic, comparing 2019 and 2021. This chapter showed that the global pandemic did not change Indonesia's production network pattern and net export with its major trading partners but changed its strength level. These indexes proved that some bilateral relations power levels (V-Index) weakened while some remained and strengthened.

Suggested Citation

  • Kiki Verico, 2023. "Analysing Indonesia’s Bilateral Trade and Investment Network," Springer Books, in: Indonesia's International Economic Strategies, chapter 0, pages 111-136, Springer.
    • Handle: RePEc:spr:sprchp:978-981-99-8458-9_4
    DOI: 10.1007/978-981-99-8458-9_4
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