Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/248094 
Year of Publication: 
2021
Citation: 
[Journal:] Business: Theory and Practice [ISSN:] 1822-4202 [Volume:] 22 [Issue:] 1 [Publisher:] Vilnius Gediminas Technical University [Place:] Vilnius [Year:] 2021 [Pages:] 91-97
Publisher: 
Vilnius Gediminas Technical University, Vilnius
Abstract: 
This study aims to analyze the impact of ASEAN-China Free Trade Area (ACFTA) on the 4 major exports of plantation commodities (including the commodities of coffee, cocoa, rubber, and palm oil) in Indonesia. The trade impact is measured based on the occurrence of trade creation or trade diversion. The negative coefficient as the result of dummy FTA (Free Trade Area) measurement indicates the presence of trade diversion. Meanwhile, the positive coefficient indicates the presence of trade creation. This study examines the export of major plantation commodities of Indonesia to China and compared with the 10 major export destination countries worldwide. The findings show that trade creation exists within the commodities of coffee, rubber, and palm oil while the trade diversion exists in the commodity of cocoa.
Subjects: 
ACFTA
trade creation
trade diversion
dummy FTA
JEL: 
F10
O53
Q17
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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