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Gravity Model Analysis on Indonesia’s Trade to ASEAN and China

In: Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-10 2022)

Author

Listed:
  • Ivori Geovani Putri

    (Univesitas Negeri Padang)

  • Doni Satria

    (Univesitas Negeri Padang)

Abstract

This study seeks to examine the influence of the Gravity Model on intra-ASEAN trade by utilizing two research models: export and import. A quantitative descriptive approach was employed, with the Gravity Model analyzed through panel data regression techniques. The findings indicate that the independent variables account for 80.46% of the variance in Indonesia’s export model to ASEAN and China. Specifically, distance negatively impacts Indonesia’s exports to these regions, while GDP and population exert a positive influence. The exchange rate, however, shows no effect on exports. In contrast, the independent variables explain 43.41% of the variance in Indonesia’s import model from ASEAN and China. Distance and exchange rate have no significant impact on imports, whereas GDP and population positively affect Indonesia’s imports from these regions.

Suggested Citation

  • Ivori Geovani Putri & Doni Satria, 2025. "Gravity Model Analysis on Indonesia’s Trade to ASEAN and China," Advances in Economics, Business and Management Research, in: Firman Firman & Shuhymee Shuhymee & Rangga Handika & Muhammad Rizky Prima Sakti & Astri Yuza Sari & (ed.), Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-10 2022), pages 480-490, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-839-4_41
    DOI: 10.2991/978-94-6463-839-4_41
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