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Assessing Indonesia-Chile bilateral trade opportunities: A revealed comparative advantage approach

Author

Listed:
  • Sulthon Sjahril Sabaruddin
  • Hartanti Nugrahaningsih

    (Faculty of Economics Universitas 17 Agustus 1945 Jakarta
    Faculty of Economics Universitas 17 Agustus 1945 Jakarta)

Abstract

This paper analyzes the Indonesia-Chile bilateral trade opportunities based on their respective export competitiveness uses the Revealed Comparative Advantage Index for 2012. It finds that in general Indonesian exports to Chile are based on its comparative advantage, but the current exports still do not reflect its potential as most of the top ten Indonesian commodities with the strongest comparative advantage still do not able to penetrate the Chilean market. Meanwhile, the majority of the top-ten Chilean exports to Indonesia are based on its comparative advantage. Thus, both nations can still enhance bilateral trade relations particularly concerning with boosting trade relations based on their comparative advantage.

Suggested Citation

  • Sulthon Sjahril Sabaruddin & Hartanti Nugrahaningsih, 2013. "Assessing Indonesia-Chile bilateral trade opportunities: A revealed comparative advantage approach," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 5(1), pages 45-56, April.
    • Handle: RePEc:uii:journl:v:5:y:2013:i:1:p:45-56
    DOI: http://dx.doi.org/10.20885/ejem.vol5.iss1.art4
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    References listed on IDEAS

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    More about this item

    Keywords

    Comparative Advantage; Export Competitiveness; Bilateral Trade;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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