IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/104688.html
   My bibliography  Save this paper

How to measure bilateral economic relations? Case of Indonesia – Australia

Author

Listed:
  • Kiki, Verico

Abstract

Indonesia and Australia had agreed to seal the deal for a bilateral economic agreement entitled Indonesia-Australia Comprehensive Economic Partnership Agreement (IA CEPA). After about ten years since both countries committed to having a bilateral agreement, IA CEPA had entered into force on July 5th, 2020. This paper has two aims. Firstly, assessing potential trade and long-run investment relations with the combination of RCA (Revealed Comparative Advantage) and CMSA (Constant Market Share Analysis) with ToT (Terms of Trade) and Net Export (NX) as the filter. Secondly, measuring the potential impacts from tariff rate elimination utilizing the GTAP (Global Trade Analysis Project) model. This paper finds that both countries have complementarity relations that Indonesia can gain to improve manufacturing productivity, and Australia can benefit from sunrise to sunset relations. This paper proves that CEPA matches their need to increase their economic benefits, revealed that they could share mutual benefits and sustainable economic relations.

Suggested Citation

  • Kiki, Verico, 2020. "How to measure bilateral economic relations? Case of Indonesia – Australia," MPRA Paper 104688, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:104688
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/104688/1/MPRA_paper_104688.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kiki, Verico, 2020. "How to measure bilateral economic relations? Case of Indonesia – Australia," MPRA Paper 104688, University Library of Munich, Germany.
    2. Kiki Verico, 2017. "The Future of the ASEAN Economic Integration," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-59613-0, December.
    3. Masato Nishiwaki, 2016. "Horizontal mergers and divestment dynamics in a sunset industry," RAND Journal of Economics, RAND Corporation, vol. 47(4), pages 961-997, November.
    4. Nishiwaki, Masato, 2008. "Horizontal Mergers and Divestment Dynamics in a Sunset Industry," MPRA Paper 21812, University Library of Munich, Germany.
    5. Verico, Kiki, 2012. "The Impact of Intra Regional Trade Agreement on FDI Inflows in Southeast Asia: Case of Indonesia, Malaysia and Thailand," MPRA Paper 42087, University Library of Munich, Germany, revised 20 Oct 2012.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kiki Verico, 2020. "How to Measure Bilateral Economic Relations? Case of Indonesia – Australia," LPEM FEBUI Working Papers 202056, LPEM, Faculty of Economics and Business, University of Indonesia, revised 2020.
    2. Kiki Verico, 2021. "Mega-Regionalism in Southeast Asia - Single- and Dual-Track Options for ASEAN Member States," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 3(Early Vie), pages 1-5.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tetsuji Okazaki & Ken Onishi & Naoki Wakamori, 2022. "Excess Capacity And Effectiveness Of Policy Interventions: Evidence From The Cement Industry," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 63(2), pages 883-915, May.
    2. Suguru Otani, 2021. "Estimating Endogenous Coalitional Mergers: Merger Costs and Assortativeness of Size and Specialization," Papers 2108.12744, arXiv.org, revised Mar 2023.
    3. Kiki Verico, 2021. "Mega-Regionalism in Southeast Asia - Single- and Dual-Track Options for ASEAN Member States," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 3(Early Vie), pages 1-5.
    4. Kiki Verico, 2018. "Modification of the Regulatory Impact Assessment on Indonesia’s Economic Policies," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 64, pages 43-58, Juni.
    5. FUKASAWA Takeshi & OHASHI Hiroshi, 2023. "Long-run Effect of a Horizontal Merger and Its Remedial Standards," Discussion papers 23001, Research Institute of Economy, Trade and Industry (RIETI).
    6. Kiki Verico, 2021. "Global Pandemic 2020: Indonesia’s Output Gap and Middle-Income Trap Scenario," LPEM FEBUI Working Papers 202157, LPEM, Faculty of Economics and Business, University of Indonesia, revised 2021.
    7. Kiki Verico & Yeremia Natanael, 2018. "Let’s talk about the Free Trade Agreement (FTA): The five ASEAN members highlighting Indonesia," LPEM FEBUI Working Papers 201823, LPEM, Faculty of Economics and Business, University of Indonesia, revised Jul 2018.
    8. Verico, Kiki & Natanael, Yeremia, 2018. "Let’s talk about the Free Trade Agreement (FTA): The five ASEAN members highlighting Indonesia," MPRA Paper 87947, University Library of Munich, Germany.
    9. NAKAMURA Tsuyoshi & OHASHI Hiroshi, 2020. "Imports, Exports, and the Impact of Mergers on Domestic Markets: A Case Study from Japan's Copper Tube Industry," Discussion papers 20013, Research Institute of Economy, Trade and Industry (RIETI).
    10. Rifai Afin, 2023. "Interlinka Terlinkage Of M Ge Of Macroeconomic Uncer Croeconomic Uncertainty And Macroeconomic Performance: Evidence From Asean-5 Countries Panel Var," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 26(1), pages 39-68, March.
    11. Irzal, Muhamad & Verico, Kiki, 2017. "The Economic Correlation between China and Southeast Asian Countries: derivative market and real sector analysis," MPRA Paper 93070, University Library of Munich, Germany, revised 02 Apr 2019.
    12. Verico, Kiki, 2018. "Modification of the Regulatory Impact Assessment (RIA) on Indonesia's trade, investment, and industrial incentive policies," MPRA Paper 89305, University Library of Munich, Germany, revised 01 Jul 2018.
    13. Kiki Verico, 2021. "What has been happening to Indonesia’s Manufacturing Industry?," LPEM FEBUI Working Papers 202158, LPEM, Faculty of Economics and Business, University of Indonesia, revised 2021.
    14. Taisuke Otsu & Martin Pesendorfer & Yuya Takahashi, 2016. "Pooling data across markets in dynamic Markov games," Quantitative Economics, Econometric Society, vol. 7(2), pages 523-559, July.
    15. Pesendorfer, Martin & Takahashi, Yuya & Otsu, Taisuke, 2014. "Testing Equilibrium Multiplicity in Dynamic Games," CEPR Discussion Papers 10111, C.E.P.R. Discussion Papers.
    16. Tirza Angerhofer, 2024. "Mergers in Declining Industry," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 65(1), pages 255-267, August.
    17. Salucknai Outtanasith & Khaysy Srithilat, 2022. "The Impact of AFTA on Trade Openness, and Foreign Direct Investment: The Empirical Evidence from Lao PDR," International Journal of Science and Business, IJSAB International, vol. 16(1), pages 142-152.
    18. Takahashi, Yuya, 2013. "Estimating a War of Attrition: The Case of the U.S. Movie Theater Industry," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 424, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    19. Angelo Castaldo & Laura Ferrari-Bravo, 2014. "Mergers in declining industries: puzzles from competition and industrial policies," Public Finance Research Papers 9, Istituto di Economia e Finanza, DSGE, Sapienza University of Rome.

    More about this item

    Keywords

    Bilateral Country Studies; Trade Policy; CGE GTAP; FDI analysis; Indonesia Australia;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:104688. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.