Open AccessTHE EFFECT OF TRADE FACILITATION ON TRADE MARGIN OF 8 ASEAN-CHINA FREE TRADE AREA COUNTRIES (ACFTA): A GRAVITY MODEL APPROACH
Author(s) -
ferdyan susetyo
Publication year - 2017
Publication title -
jde (journal of developing economies)
Language(s) - English
Resource type - Journals
eISSN - 2541-1012
pISSN - 2528-2018
DOI - 10.20473/jde.v1i2.3297
Subject(s) - trade facilitation , margin (machine learning) , gravity model of trade , port (circuit theory) , international economics , international free trade agreement , international trade , harmonization , bilateral trade , trade barrier , economics , business , china , computer science , engineering , physics , machine learning , acoustics , law , political science , electrical engineering
Trade facilitation is an effort of simplification and harmonization of international trade procedures. Trade facilitation that manifested in the form of policy packages that aim to reduce trade costs and improve export growth. Export growth can be sourced from the level of diversity of exported goods (extensive margin) and the volume of exported goods (intensive margin). This study aims to analyze the effect of trade facilitation on the extensive and intensive margin of trade eight member countries of ACFTA during the years 2006-2014. Trade facilitation indicators used in this study consisted of exporters and importers port efficiency. This study uses gravity model and estimation techniques Random Effect Model. The results showed that exporter port efficiency have a positive and significant effect on the extensive margin while importer port efficiency has a positive and significant effect on the intensive margin.