A Gravity Model Analysis On Trades Between Indonesia-ASEAN Countries And Indonesia-Non ASEAN Asian Countries

The Indonesia-ASEAN trade relations have been growing so much the past decades,and also Indonesia – Asian countries trade relations have lots of growth as well.Both in import and exports,Indonesia has been growing rapidly in which corresponded with the growing economy of Indonesia.Despite the fact that several studies have been conducted in the field of international commerce using a variety of econometric techniques,the empirical results are still ambiguous.While some research suggested that bilateral trade has a trade diversion effect,others suggested that it led to trade creation.This issue,which is far from settled,served as the impetus for the study’s investigation of the impacts of bilateral trade relations between Indonesia and its trading partners in Asia.This thesis employs a gravity model analysis to investigate the determinants of trade between Indonesia-ASEAN and other Asian countries.The research draws on data from various sources,including bilateral trade data,economic indicators,and other relevant variables.The study aims to identify the factors that drive trade between Indonesia ASEAN and other Asian countries and to examine the significance of these factors in shaping the patterns of trade.The thesis employs a comprehensive methodology,including descriptive statistics,econometric techniques,and graphical representations,to analyze the data and test the hypothesis.The findings of the research contribute to the literature on international trade and regional integration,providing insights into the determinants of trade between Indonesia-ASEAN and other Asian countries.The policy implications of the study are discussed in the concluding chapter,which highlights the need for greater regional cooperation,investment in infrastructure,and trade facilitation to promote trade between Indonesia-ASEAN and other Asian countries.