International Journal of Academic Research in Business and Social Sciences

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Impact of Trade Liberalization on Indonesian Export to South Korea, Japan, and China

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Silva Nur Rizha Fajriyanti, Rossanto Dwi Handoyo, Abdul Rahim Ridzuan, Mohamad Idham Md Razak

Pages 762-769 Received: 26 Mar, 2020 Revised: 29 Apr, 2020 Published Online: 30 May, 2020

http://dx.doi.org/10.46886/IJARBSS/v10-i5/7247
One of the characteristics of an open economy is the contribution of international trade in the economy. Numerous trade agreements have been made to reduce international trade barriers. This study aims to determine the impact of trade liberalization on Indonesian exports to three major trading partners in East Asia, South Korea, Japan and China. The impact of liberalization on exports was examined using a gravity model and a panel with a period of 20 years. The independent variables used in this study are tariff, degree of openness, population, exchange rate, GDP, and distance. The results of this study indicate that trade liberalization, viewed from the tariff and degree of openness has a significant effect on exports. Other influencing variables are GDP, population, and exchange rate. The variable of distance does not affect Indonesian exports to the three trading partner countries.
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In-Text Citation: (Fajriyanti et al., 2020)
To Cite this Article: Fajriyanti, S. N. R., Handoyo, R. D., Ridzuan, A. R., & Razak, M. I. M. (2020). Impact of Trade Liberalization on Indonesian Export to South Korea, Japan, And China. International Journal of Academic Research in Business and Social Sciences, 10(5), 762–769.