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Globalization and trade liberalization promote the flow of goods and services between countries. In the international trade sector, the palm oil is one of Indonesia's main export commodities, as Indonesia is one of the largest exporters in the world. In addition to Indonesia, Malaysia is also one of the largest exporters of palm oil in the world. Even so, Indonesia and Malaysia mutually trade the palm oil commodities one another. In economics, the international trade involving products in the same industry is called intra-industry trade. The aims of this study is to analyze the intra-industry trade in the palm oil industry between Indonesia and Malaysia from 1989 to 2015.

The Intra-Industry Trade of Palm Oil Commodity Between Indonesia and Malaysia