@article{198f96edec764eb9a698980d1aaa8fbb,
title = "The impact of opening the export promotion agencies on Indonesia's non-oil and gas exports",
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.",
keywords = "Developed country, Developing country, Global value, ITPC, Indonesia, Non-oil and gas exports value",
author = "Ajija, {Shochrul Rohmatul} and Zakia, {Arivia Fikratuz} and Rudi Purwono",
note = "Funding Information: Opening the first overseas export representative office in Finland in 1919 had a major impact on improving export performance and reducing the trade balance deficit problem. The success of the EPA has encouraged various countries to open export promotion agents (EPA). EPA, assisted by diplomatic representatives, is the main source of information in dealing with the problem of market failures and increasing trading activity (Gil-Pareja et al., 2008). Before exporting their products, prospective exporters should understand the preferences and conditions of consumers in the export destination country. However, the costs of obtaining information and marketing costs in foreign markets are quite large, especially for prospective local SME exporters. In this case, EPA as the country's representative office abroad helps prospective exporters understand and find new markets for their products. Facilities provided by the EPA (Lederman et al., 2010) consists of country image building. export support services, marketing, and market search and market survey.This work was supported by Universitas Airlangga, Riset Mandat 2020. Funding Information: This work was supported by Universitas Airlangga , Riset Mandat 2020 . Publisher Copyright: {\textcopyright} 2021 The Author(s)",
year = "2021",
month = aug,
doi = "10.1016/j.heliyon.2021.e07756",
language = "English",
volume = "7",
journal = "Heliyon",
issn = "2405-8440",
publisher = "Elsevier BV",
number = "8",
}
