The impact of Asean-China Free Trade Area (ACFTA) agreement on Indonesia’s major plantation export commodities

Erlambang Budi Darmanto; Rossanto Dwi Handoyo; Wisnu Wibowo

doi:10.3846/btp.2021.11012

The impact of Asean-China Free Trade Area (ACFTA) agreement on Indonesia’s major plantation export commodities

Erlambang Budi Darmanto, Rossanto Dwi Handoyo, Wisnu Wibowo

Research output: Contribution to journal › Article › peer-review

9 Citations (Scopus)

Abstract

This study aims to analyze the impact of ASEAN-China Free Trade Area (ACFTA) on the 4 major exports of plantation commodities (including the commodities of coffee, cocoa, rubber, and palm oil) in Indonesia. The trade impact is measured based on the occurrence of trade creation or trade diversion. The negative coefficient as the result of dummy FTA (Free Trade Area) measurement indicates the presence of trade diversion. Meanwhile, the positive coefficient indicates the presence of trade creation. This study examines the export of major plantation commodities of Indonesia to China and compared with the 10 major export destination countries worldwide. The findings show that trade creation exists within the commodities of coffee, rubber, and palm oil while the trade diversion exists in the commodity of cocoa.

Original language	English
Pages (from-to)	91-97
Number of pages	7
Journal	Business: Theory and Practice
Volume	22
Issue number	1
DOIs	https://doi.org/10.3846/btp.2021.11012
Publication status	Published - 8 Jan 2021

Keywords

ACFTA
Dummy FTA
Trade creation
Trade diversion

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.3846/btp.2021.11012

Cite this

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abstract = "This study aims to analyze the impact of ASEAN-China Free Trade Area (ACFTA) on the 4 major exports of plantation commodities (including the commodities of coffee, cocoa, rubber, and palm oil) in Indonesia. The trade impact is measured based on the occurrence of trade creation or trade diversion. The negative coefficient as the result of dummy FTA (Free Trade Area) measurement indicates the presence of trade diversion. Meanwhile, the positive coefficient indicates the presence of trade creation. This study examines the export of major plantation commodities of Indonesia to China and compared with the 10 major export destination countries worldwide. The findings show that trade creation exists within the commodities of coffee, rubber, and palm oil while the trade diversion exists in the commodity of cocoa.",

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AB - This study aims to analyze the impact of ASEAN-China Free Trade Area (ACFTA) on the 4 major exports of plantation commodities (including the commodities of coffee, cocoa, rubber, and palm oil) in Indonesia. The trade impact is measured based on the occurrence of trade creation or trade diversion. The negative coefficient as the result of dummy FTA (Free Trade Area) measurement indicates the presence of trade diversion. Meanwhile, the positive coefficient indicates the presence of trade creation. This study examines the export of major plantation commodities of Indonesia to China and compared with the 10 major export destination countries worldwide. The findings show that trade creation exists within the commodities of coffee, rubber, and palm oil while the trade diversion exists in the commodity of cocoa.

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The impact of Asean-China Free Trade Area (ACFTA) agreement on Indonesia’s major plantation export commodities

Abstract

Keywords

UN SDGs

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