Comparative Analysis on The Market Share of Indonesian Export Commodities: Opportunities and Challenges
Setyo Tri Wahyudi(1*), Indra Maipita(2)(1) Department of Economics Faculty of Economics and Business Brawijaya University
(2) Department of Economics Faculty of Economics and Business State University of Medan
(*) Corresponding Author
Abstract
Indonesia is one of the largest exporting countries, mainly of food products and chemicals. However, its import-export data show that the high export value on chemical commodities and food product is followed by relatively high import value on those commodities. This study examines the comparative advantage of Indonesian export commodities. The analysis is conducted by mapping and analyzing the condition and the potential of Indonesian export market in various trading partner countries. In addition, this study identifies the potential, opportunities, and challenges that Indonesia will face to improve the market of its export commodities. The testing of comparative advantage is carried out using chemical commodities. RCA is a method that is used to analyze the competitiveness of Indonesian export commodities. The results of this study indicate that chemicals have a comparative advantage with the value of greater that 1 during 2012-2016, but the import of chemical raw materials also tends to be higher. Featured commodities are inseparable from challenges and obstacles, such as dependence on main export destination countries, economic crises, and relatively high import value of raw materials. However, the opportunity of Indonesia to increase the contribution of the export to national income is still wide open. Maximizing the potential of market diversification strategy that is implemented by Indonesian government is expected to increase the export of Indonesian commodities.
Keywords
Full Text:
PDFReferences
Balassa, B. (1965). Trade Liberalization and “Revealed” Comparative Advantage. The Manchester School of Economic and Social Studies, Vol. 33. No. 2: 99-123.
Ishogai, T., & Morishita, H. (2002). Analysis of Intra- and Inter-Regional Trade in East Asia: Comparative Advantage Structure and Dynamic Interdependency in Trade Flows. Japan: International Department Bank of Japan.
Jayadi, A., & Azis, H. A. (2016). Peta Persaingan Produk Ekspor Indonesia, Malaysia, Singapura dan Thailand. Jurnal Ilmu Ekonomi Terapan, Vol. 1 No. 2: 1-16.
Jung, & Marshall. (1985). The Process of Industrial Development and Alternative Development Strategies. Princeton: Princeton University Press.
Nopirin. (1997). Ekonomi Internasional. Yogyakarta: BPFE.
Ragimun. (t.thn.). Analisis Perdagangan Produk Alas Kaki Indonesia-China. Kementerian Keuangan.
Rahmadi, R., & Ichihashi, M. (2011). Export and Economic Growth in Indonesia: A Causality Approach Based on Multivariate Error Correction Model. Journal of International Development and Cooperation, Vol. 17 No. 2.
Reis, J. G., & Farole, T. (2012). Trade Competitiveness Diagnostic Toolkit. Washington D.C.: The World Bank.
Ridhwan, M. M., Wicaksono, G., Linda, N., Bary, P., Suryani, F. T., & Satyanugroho, R. (2015). Analisis Daya Saing dan Strategi Industri Nasional di era Masyarakat Ekonomi ASEAN dan Perdagangan Bebas. Working Paper Bank Indonesia, 1-111.
Salvatore, D. (2006). Ekonomi Internasional. Jakarta: Erlangga.
Todaro, M., & Smith. (2006). Pembangunan Ekonomi: Edisi Kesembilan. Jakarta: Erlangga.
Widodo, T. (2008). Dynamic Changes in Comparative Advantage: Japan ‘Flying Geese Model and Its Implication for China. Journal of Chinese Economic and Foreign Trade Studies, Vol. 1. No. 3: 200-213.
Article Metrics
Abstract view(s): 1577 time(s)PDF: 1174 time(s)
Refbacks
- There are currently no refbacks.