Open AccessAnalysis of Intra-Industry Trade in Cosmetic Commodities between Indonesia and Nine Trading Partners in The Asian Region in 2004-2018 Period
Author(s) -
Tuhfah Ikbar Ramadhan,
Firmansyah Firmansyah
Publication year - 2020
Publication title -
afebi economic and finance review
Language(s) - English
Resource type - Journals
ISSN - 2548-527X
DOI - 10.47312/aefr.v5i02.492
Subject(s) - tariff , per capita income , china , panel data , per capita , economics , business , agricultural economics , international trade , international economics , geography , demography , econometrics , population , archaeology , sociology
This research aims to analyze the level of intra-industry trade and the effect of average country size, average per capita income, difference in per capita income, distance, and average tariff on intra-industry trade of cosmetic commodities between Indonesia and nine trading partners (Singapore, Malaysia, Thailand, Philippines, India, China, Hong Kong, Japan, and South Korea) from 2004-2018. This study uses a Grubel-Llyod Index to determine the level of intra-industry trade and static panel data method to see the effect of independent variables on the level of intra-industry trade. The result shows that the level of intra-industry trade of cosmetic commodities between Indonesia and its trading partners (except India) still tended to be low. The average country size, average per capita income, and average tariff have a positive and significant effect on the level of intra-industry trade. Meanwhile, the difference in per capita income and distance have a negative and significant effect.