THE DYNAMICS SPILLOVER OF TRADE BETWEEN INDONESIA AND ITS COUNTERPARTS IN TERMS OF AFTA 2015 : A MODIFIED GRAVITY EQUATION APPROACH

The forthcoming 2015, ASEAN is being confident to implement ASEAN Free Trade (AFTA). The existence of AFTA is to outstrip trade liberalization due to augment trade volume significantly and transaction easing as well among the members of AFTA, mainly by inducing lower tariffs some certain commodities...

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Main Author: Barli Suryanta
Format: Article
Language:Indonesian
Published: Bank Indonesia 2012-12-01
Series:Bulletin Ekonomi Moneter dan Perbankan
Online Access:https://www.bmeb-bi.org/index.php/BEMP/article/view/422
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spelling doaj-279eeaa8235d44509b502927283ed57c2020-11-24T21:10:48ZindBank IndonesiaBulletin Ekonomi Moneter dan Perbankan1410-80462460-91962012-12-01152557410.21098/bemp.v15i2.422422THE DYNAMICS SPILLOVER OF TRADE BETWEEN INDONESIA AND ITS COUNTERPARTS IN TERMS OF AFTA 2015 : A MODIFIED GRAVITY EQUATION APPROACHBarli SuryantaThe forthcoming 2015, ASEAN is being confident to implement ASEAN Free Trade (AFTA). The existence of AFTA is to outstrip trade liberalization due to augment trade volume significantly and transaction easing as well among the members of AFTA, mainly by inducing lower tariffs some certain commodities up to 0%. This paper is conducted in order to examine on what prominent commodity of Indonesia compared to its counterparts namely Brunei, Malaysia, Philippines, Singapore and Thailand. These Indonesia counterparts are selected therefore they were the founding of ASEAN. Furthermore, this paper utilizes a modified Gravity Equation model. This model has an effort to estimate the significance of some parameters of variable from model equation. Thus, it can be detected that what are from these variables from a model equation being as a key determination factor to influence trading transactions. This paper also assesses the adjusted R-squared due to which Indonesia counterparts incur some vantage points as well as beneficial for Indonesia in terms of AFTA. The novelty contribution of this paper is to reveal the dynamics trade spillover between Indonesia some strategic sectors and its counterparts. By doing so, Indonesia is expected to be a dominant player in AFTA 2015 and taking some advantageous from AFTA into Indonesia account.   Keywords: AFTA 2015, a modified gravity equation model, analysis of data panel JEL Classification: C33, C51, F15https://www.bmeb-bi.org/index.php/BEMP/article/view/422
collection DOAJ
language Indonesian
format Article
sources DOAJ
author Barli Suryanta
spellingShingle Barli Suryanta
THE DYNAMICS SPILLOVER OF TRADE BETWEEN INDONESIA AND ITS COUNTERPARTS IN TERMS OF AFTA 2015 : A MODIFIED GRAVITY EQUATION APPROACH
Bulletin Ekonomi Moneter dan Perbankan
author_facet Barli Suryanta
author_sort Barli Suryanta
title THE DYNAMICS SPILLOVER OF TRADE BETWEEN INDONESIA AND ITS COUNTERPARTS IN TERMS OF AFTA 2015 : A MODIFIED GRAVITY EQUATION APPROACH
title_short THE DYNAMICS SPILLOVER OF TRADE BETWEEN INDONESIA AND ITS COUNTERPARTS IN TERMS OF AFTA 2015 : A MODIFIED GRAVITY EQUATION APPROACH
title_full THE DYNAMICS SPILLOVER OF TRADE BETWEEN INDONESIA AND ITS COUNTERPARTS IN TERMS OF AFTA 2015 : A MODIFIED GRAVITY EQUATION APPROACH
title_fullStr THE DYNAMICS SPILLOVER OF TRADE BETWEEN INDONESIA AND ITS COUNTERPARTS IN TERMS OF AFTA 2015 : A MODIFIED GRAVITY EQUATION APPROACH
title_full_unstemmed THE DYNAMICS SPILLOVER OF TRADE BETWEEN INDONESIA AND ITS COUNTERPARTS IN TERMS OF AFTA 2015 : A MODIFIED GRAVITY EQUATION APPROACH
title_sort dynamics spillover of trade between indonesia and its counterparts in terms of afta 2015 : a modified gravity equation approach
publisher Bank Indonesia
series Bulletin Ekonomi Moneter dan Perbankan
issn 1410-8046
2460-9196
publishDate 2012-12-01
description The forthcoming 2015, ASEAN is being confident to implement ASEAN Free Trade (AFTA). The existence of AFTA is to outstrip trade liberalization due to augment trade volume significantly and transaction easing as well among the members of AFTA, mainly by inducing lower tariffs some certain commodities up to 0%. This paper is conducted in order to examine on what prominent commodity of Indonesia compared to its counterparts namely Brunei, Malaysia, Philippines, Singapore and Thailand. These Indonesia counterparts are selected therefore they were the founding of ASEAN. Furthermore, this paper utilizes a modified Gravity Equation model. This model has an effort to estimate the significance of some parameters of variable from model equation. Thus, it can be detected that what are from these variables from a model equation being as a key determination factor to influence trading transactions. This paper also assesses the adjusted R-squared due to which Indonesia counterparts incur some vantage points as well as beneficial for Indonesia in terms of AFTA. The novelty contribution of this paper is to reveal the dynamics trade spillover between Indonesia some strategic sectors and its counterparts. By doing so, Indonesia is expected to be a dominant player in AFTA 2015 and taking some advantageous from AFTA into Indonesia account.   Keywords: AFTA 2015, a modified gravity equation model, analysis of data panel JEL Classification: C33, C51, F15
url https://www.bmeb-bi.org/index.php/BEMP/article/view/422
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AT barlisuryanta dynamicsspilloveroftradebetweenindonesiaanditscounterpartsintermsofafta2015amodifiedgravityequationapproach
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