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The Role of ASEAN+5 Trade Agreement in Boosting Agricultural Exports: Insights and Implications for the RCEP Agreement

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  • Heri, Akhmadi
  • Ji Yong, Lee

Abstract

The ASEAN Regional Comprehensive Economic Partnership (RCEP) agreement is the world’s largest free trade agreement, which aims to deepen economic integration in East Asia, with ASEAN as a hub. This study examines the impact of the ASEAN regional trade agreement with five major partner countries, which was then consolidated into a single free trade agreement, the Regional Comprehensive Economic Partnership, on Indonesian agricultural exports, including the three major commodities of palm oil, rubber, and coconut. The Poisson Pseudo-Maximum Likelihood (PPML) approach was employed to examine the impact of Indonesia’s participation in the ASEAN+5 FTAs on its exports to 35 major partner countries over the period from 2000 to 2020. The empirical findings suggest that Indonesia’s involvement in the ASEAN+5 agreement, which serves as a proxy for the Regional Comprehensive Economic Partnership (RCEP), has had a positive effect on its rubber exports, but a negative and significant impact on the exports of aggregate agriculture, palm oil, and coconuts.

Suggested Citation

  • Heri, Akhmadi & Ji Yong, Lee, . "The Role of ASEAN+5 Trade Agreement in Boosting Agricultural Exports: Insights and Implications for the RCEP Agreement," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 6(1).
    • Handle: RePEc:ags:reowae:401190
    DOI: 10.22004/ag.econ.401190
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