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ID 49776
file
creator
Suhaila, Marisa
subject
Foreign direct investment
intra industry trade
abstract
In the globalization era, many countries try to engage more in the international trade to be part of global networks. International trade is believed can be triggered by enlarging country’s production of scale. Foreign investment is expected to be one of ways to improve it. Thus, developing countries, such as Indonesia, try to attract more FDI inflow. Intra industry trade (IIT) is a form of international trade measuring export and import in the same categorize of industry. High degree of IIT means a country has strong integration with partner’s country. This study tries to examine the relationship between manufacturing FDI in Indonesia and bilateral IIT between Indonesia and each Japan, China, and ASEAN-9, especially in the industry level. The result shows that not all FDI in all industries have positive and significant relationship with intra industry trade. For example, FDI in paper-based goods, and printing industry has positive association and statistically significant with IIT between Indonesia and Japan as well as Indonesia and China. Moreover, FDI in metal, except machinery, and equipment has positive and statistically significant with IIT between Indonesia with both China and ASEAN-9. The relationship of FDI and intra industry trade differs across location and industries.
journal title
IDEC DP2 Series
volume
Volume 10
issue
Issue 3
start page
1
end page
14
date of issued
2020-10
publisher
広島大学大学院国際協力研究科
language
eng
nii type
Departmental Bulletin Paper
HU type
Departmental Bulletin Papers
DCMI type
text
format
application/pdf
text version
publisher
department
Graduate School for International Development and Cooperation
Graduate School of Humanities and Social Sciences
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