DETERMINANTS OF TRADE FLOWS IN ASEAN-4 MACHINERY AND TRANSPORT EQUIPMENT INDUSTRY: GLOBAL PRODUCTION SHARING INSIGHT
| Main Authors: | , RAFIAZKA MILLANIDA H, , Prof. Tri Widodo, M.Ec.Dev., P.hD. |
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| Format: | Thesis NonPeerReviewed |
| Terbitan: |
[Yogyakarta] : Universitas Gadjah Mada
, 2013
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| Subjects: | |
| Online Access: |
https://repository.ugm.ac.id/122117/ http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=62217 |
Daftar Isi:
- Globalization brings production chain into higher plane over the past three decades. Intermediate inputs network then becomes the base of production stage maintained by various global companies worldwide. Global production sharing sounds plausible to be reckoned as certain phenomenon in the history of international trade due to its feature opening up opportunities for firms to relocate slices of tasks of production process and developing countries to join production chain. Production network of machinery and transport equipment in ASEAN-4 countries is dominated by automobile industry and the way it connects to East Asia is particularly well example. This paper aims to offer divergent analysis on the posture of industry, the trade pattern of time period region-based parts and components case and the model of determinants of trade flow. Trade Balance Index (TBI) and Grubel-Lloyd Index are used to reveal trade pattern. Panel Ordinary Least Square (POLS) estimates gravity equation to deal with trade flow in machinery and transport equipment (SITC 7) Rev. 3 which is decomposed into 5-digit parts and components level. For the purpose of the analysis, only ASEAN-4 and East Asian countries comprising Thailand, Indonesia, Malaysia, Philippine, Japan, South Korea, and China with data on parts and components in machinery and transport equipment from 1992 to 2012. The evidence coming from this paper shows that the posture of ASEAN-4 machinery and transport equipment industry is supported by vital participation of MNCs, especially East Asian countries origin. On trade pattern, competitiveness development of parts and components made in ASEAN-4 induces specialized dynamics as time goes by, notably from 1992 to 2012. It is found that the determinants of trade flow, such as trade volume, real gross domestic products, logistics performance index, distance, and real effective exchange rate, remains vary among ASEAN-4 regarding to different policy and orientation in trade.