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Impact Analysis of Normalized Revealed Comparative Advantageon ASEAN’s Non-Oil and Gas Export Pattern Using Gravity-Model Approach

Author

Listed:
  • Umar Fachrudin

    (Center for Foreign Trade Policy, Ministry of Trade, Republic of Indonesia)

  • Fithra Faisal Hastiadi

    (Department of Economics, Faculty of Economics and Business, Universitas Indonesia, Depok, 16424, Indonesia)

Abstract

The development of global economic challenges hasforced ASEAN countries to further deepen its economic integration within the ASEAN Economic Cooperation (AEC) and to incorporate several ASEAN Plus agreements into Regional Comprehensive Economic Partnership (RCEP). Under thiscircumstance, the ASEAN members need to distinguish how the difference in comparative advantage of each export commodity affects and influences the pattern of ASEAN’s non-oil exports. This study attempts to identify the impact of comparative advantage, represented by Normalized Revealed Comparative Advantage (NRCA) index, on the non-oil export pattern of the ASEAN countries using the augmented gravity model as its research method. The results indicate that comparative advantage has a positive influence on ASEAN’s non-oil exports and that the comparative advantages in agricultural commodities have the biggest influence.

Suggested Citation

  • Umar Fachrudin & Fithra Faisal Hastiadi, 2016. "Impact Analysis of Normalized Revealed Comparative Advantageon ASEAN’s Non-Oil and Gas Export Pattern Using Gravity-Model Approach," Working Papers in Economics and Business 201603, Faculty of Economics and Business, University of Indonesia, revised May 2016.
    • Handle: RePEc:lpe:wpecbs:201603
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    References listed on IDEAS

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    Cited by:

    1. Memduh Alper Demir & Mustafa Bilik & Utku Utkulu, 2017. "The Impact of Competitiveness on Trade Efficiency: The Asian Experience by Using the Stochastic Frontier Gravity Model," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 5(4), pages 1-15.

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    Keywords

    seaport status; distance; regional economic development; seaport access; Indonesia;
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