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Analysis of Intra-Industry Trade between Indonesia and Japan: A Case Study in Manufactured and Agricultural Products

Author

Listed:
  • Zamroni

    (Researcher, Research Centre for Economics, the Indonesian Institute of Sciences)

Abstract

This study analyzes the intra-industry trade (IIT) patterns between Indonesia and Japan in manufactured and agricultural products and explores its determinants. As one of the biggest importers of Indonesian products, it is expected that Japan has a big influence on the IIT between Japan and Indonesia. The Asian financial crisis, as one determinant, disrupted the extent of intra-industry trade between Indonesia and Japan. To reduce trade barriers, economic agreements such as those found in the Asia Pacific Economic Cooperation had a positive effect on bilateral intra-industry trade between the two countries. In simulations, the bilateral trade policies imposed yielded significant benefits to encourage bilateral intra-industry trade between Indonesia and Japan.

Suggested Citation

  • Zamroni, 2005. "Analysis of Intra-Industry Trade between Indonesia and Japan: A Case Study in Manufactured and Agricultural Products," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 53, pages 97-115, April.
  • Handle: RePEc:lpe:efijnl:200504
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    More about this item

    Keywords

    Intra-industry trade -Indonesia and Japan;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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