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Assessing Indonesia-Chile Bilateral Trade Opportunities: A Revealed Comparative Advantage Approach

Author

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  • Sulthon Sjahril Sabaruddin
  • Hartanti Nugrahaningsih

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.Keywords: Comparative Advantage, Export Competitiveness, Bilateral TradeJEL classification numbers: F14, F15, F17AbstrakMakalah ini menganalisis peluang perdagangan bilateral Indonesia-Chile berdasarkan daya saing ekspor masing-masing negara menggunakan index Revealed Comparative Advantage untuk 2012. Paper ini menemukan bahwa, secara umum, ekspor Indonesia ke Chile didasarkan pada keunggulan komparatif, tetapi ekspor saat ini masih belum mencerminkan semua potensi ekspornya karena kebanyakan dari sepuluh komoditas Indonesia dengan keunggulan komparatif terkuat masih belum mampu menembus pasar Chili. Sementara itu, sebagian besar dari sepuluh-besar ekspor Chili ke Indonesia telah didasarkan pada keunggulan komparatif. Dengan demikian, kedua negara masih bisa meningkatkan hubungan perdagangan bilateral terutama terkait dengan upaya perdagangan berdasarkan keunggulan komparatif masing-masing negara.Keywords: Keunggulan komparatif, daya saing ekspor, perdagangan bilateralJEL classification numbers: F14, F15, F17

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.
    • Handle: RePEc:uii:journl:v:5:y:2013:i:1:p:45-56:id:3677
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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
    • 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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