INDONESIA-CHINA’S BILATERAL TRADE PATTERN ANALYSIS, PRE AND POST FULL IMPLEMENTATION OF THE ACFTA
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Abstract
This paper intends to study whether Indonesian-China’s bilateral trade pattern has
substantially changed
after the full implementation of ASEAN-Cina Free Trade Agreement (ACFTA) in 2010. It also
identifies the trade
sectors which have comparative advantage and comparative disadvantage with China.
Utilizing descriptive
quantitative analysis, this study comparing the trade patterns pre and post ACFTA. The
results showed that the
trade patterns between the two countries are relatively similar between before and after
ACFTA. In addition, many
Indonesia’s commodity exports are still based on natural resources. Therefore, it needs
trade policies to encourage
higher value-added of the products.
substantially changed
after the full implementation of ASEAN-Cina Free Trade Agreement (ACFTA) in 2010. It also
identifies the trade
sectors which have comparative advantage and comparative disadvantage with China.
Utilizing descriptive
quantitative analysis, this study comparing the trade patterns pre and post ACFTA. The
results showed that the
trade patterns between the two countries are relatively similar between before and after
ACFTA. In addition, many
Indonesia’s commodity exports are still based on natural resources. Therefore, it needs
trade policies to encourage
higher value-added of the products.
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