The impact of opening the export promotion agencies on Indonesia's non-oil and gas exports

Shochrul Rohmatul Ajija, Arivia Fikratuz Zakia, Rudi Purwono

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)

Abstract

The opening of the Indonesian Trade Promotion Center is one of the policies implemented by the government to increase Indonesia's non-oil and gas exports. However, fluctuations in the value of non-oil exports make the role of the ITPC doubtful. This study aims to analyze the impact of Indonesia Trade Promotion Center as Export Promotion Agency (EPA) on the value of Indonesia's non-oil and gas exports globally, to developing countries, and developed countries from 2000 to 2018. The method used in this study is the Random Effect Model and gravity model. Estimation results show that EPA Indonesia (ITPC) has a positive and significant effect on the value of Indonesian non-oil exports in all models. Foreign direct investment (FDI) has a positive effect and significant for global and developing countries model. GDP per capita and Free Trade Agreements have a significant positive effect on non-oil exports in all models. The geographical distance variable has a negative impact for Indonesian non-oil exports in all models, except for the developed countries model.

Original languageEnglish
Article numbere07756
JournalHeliyon
Volume7
Issue number8
DOIs
Publication statusPublished - Aug 2021

Keywords

  • Developed country
  • Developing country
  • Global value
  • ITPC
  • Indonesia
  • Non-oil and gas exports value

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