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INTRA-INDUSTRY TRADE BETWEEN INDIA AND INDONESIA

Buletin Ekonomi Moneter dan Perbankan · Vol. 21 (2019) · pp. 511–530

DOI
10.21098/bemp.v0i0.978
ISSN
2460-9196, 1410-8046
Published
2019-02-27
Publisher
Bank Indonesia
Language
eng
License
creativecommons.org/licenses/by-nc/4.0

Abstract

English

This paper analyzes the determinants of India’s Intra-Industry Trade (IIT) with itstrading partner, Indonesia, from 1995 to 2017. We estimate India’s IIT with Indonesiausing bilateral commodity trade data at the two-digit Broad Economic Categoriesclassification code level. Our estimates of IIT demonstrate that India’s trade withIndonesia is indeed intra-industry in nature. However, no remarkable improvementsin the intensity of IIT is found. We also examine the determinants of IIT by estimatinga standard IIT equation using an autoregressive distributed lag model. Our empiricalfindings reveal that trade imbalances, disparity in the demand structure, and thehuman capital endowments among the countries reduce bilateral IIT and that foreigndirect investment and trade openness play an important role in enhancing it. This studytherefore suggests relevant policy interventions to facilitate fair trade by reducingbarriers.

Indonesian

This paper analyzes the determinants of India’s Intra-Industry Trade (IIT) with itstrading partner, Indonesia, from 1995 to 2017. We estimate India’s IIT with Indonesiausing bilateral commodity trade data at the two-digit Broad Economic Categoriesclassification code level. Our estimates of IIT demonstrate that India’s trade withIndonesia is indeed intra-industry in nature. However, no remarkable improvementsin the intensity of IIT is found. We also examine the determinants of IIT by estimatinga standard IIT equation using an autoregressive distributed lag model. Our empiricalfindings reveal that trade imbalances, disparity in the demand structure, and thehuman capital endowments among the countries reduce bilateral IIT and that foreigndirect investment and trade openness play an important role in enhancing it. This studytherefore suggests relevant policy interventions to facilitate fair trade by reducingbarriers.

Collaboration network of the authors

4 authors · 3 co-authorship links

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  • Universitas Airlangga
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
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Co-authorOrganisationJoint articles
R Eki RahmanAffiliation unknown1
Nisful LailaUniversitas Airlangga1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://www.bmeb-bi.org/index.php/BEMP/oai, first harvested 8 Nov 2026, last seen 8 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en-US">INTRA-INDUSTRY TRADE BETWEEN INDIA AND INDONESIA</dc:title>
	<dc:creator>VIDYA, C T</dc:creator>
	<dc:creator>Prabheesh, KP</dc:creator>
	<dc:description xml:lang="en-US">This paper analyzes the determinants of India’s Intra-Industry Trade (IIT) with itstrading partner, Indonesia, from 1995 to 2017. We estimate India’s IIT with Indonesiausing bilateral commodity trade data at the two-digit Broad Economic Categoriesclassification code level. Our estimates of IIT demonstrate that India’s trade withIndonesia is indeed intra-industry in nature. However, no remarkable improvementsin the intensity of IIT is found. We also examine the determinants of IIT by estimatinga standard IIT equation using an autoregressive distributed lag model. Our empiricalfindings reveal that trade imbalances, disparity in the demand structure, and thehuman capital endowments among the countries reduce bilateral IIT and that foreigndirect investment and trade openness play an important role in enhancing it. This studytherefore suggests relevant policy interventions to facilitate fair trade by reducingbarriers.</dc:description>
	<dc:description xml:lang="id-ID">This paper analyzes the determinants of India’s Intra-Industry Trade (IIT) with itstrading partner, Indonesia, from 1995 to 2017. We estimate India’s IIT with Indonesiausing bilateral commodity trade data at the two-digit Broad Economic Categoriesclassification code level. Our estimates of IIT demonstrate that India’s trade withIndonesia is indeed intra-industry in nature. However, no remarkable improvementsin the intensity of IIT is found. We also examine the determinants of IIT by estimatinga standard IIT equation using an autoregressive distributed lag model. Our empiricalfindings reveal that trade imbalances, disparity in the demand structure, and thehuman capital endowments among the countries reduce bilateral IIT and that foreigndirect investment and trade openness play an important role in enhancing it. This studytherefore suggests relevant policy interventions to facilitate fair trade by reducingbarriers.</dc:description>
	<dc:publisher xml:lang="en-US">Bank Indonesia</dc:publisher>
	<dc:date>2019-02-27</dc:date>
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	<dc:type xml:lang="en-US">Peer-reviewed Article</dc:type>
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	<dc:identifier>https://www.bmeb-bi.org/index.php/BEMP/article/view/978</dc:identifier>
	<dc:identifier>10.21098/bemp.v0i0.978</dc:identifier>
	<dc:source xml:lang="en-US">Buletin Ekonomi Moneter dan Perbankan; Vol 21 (2019): 12th BMEB Call for Papers Special Issue; 511-530</dc:source>
	<dc:source xml:lang="id-ID">Buletin Ekonomi Moneter dan Perbankan; Vol 21 (2019): 12th BMEB Call for Papers Special Issue; 511-530</dc:source>
	<dc:source>2460-9196</dc:source>
	<dc:source>1410-8046</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://www.bmeb-bi.org/index.php/BEMP/article/view/978/738</dc:relation>
	<dc:relation>https://www.bmeb-bi.org/index.php/BEMP/article/view/978/839</dc:relation>
	<dc:rights xml:lang="en-US">Copyright (c) 2019 Buletin Ekonomi Moneter dan Perbankan</dc:rights>
	<dc:rights xml:lang="en-US">http://creativecommons.org/licenses/by-nc/4.0</dc:rights>
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