Impact Analysis of Normalized Revealed Comparative Advantageon ASEAN’s Non-Oil and Gas Export Pattern Using Gravity-Model Approach

Umar Fachrudin () and Fithra Hastiadi
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Umar Fachrudin: Center for Foreign Trade Policy, Ministry of Trade, Republic of Indonesia
Authors registered in the RePEc Author Service: Umar Fakhrudin

No 201603, Working Papers in Economics and Business from Faculty of Economics and Business, University of Indonesia

Abstract: The development of global economic challenges hasforced ASEAN countries to further deepen its economic integration within the ASEAN Economic Cooperation (AEC) and to incorporate several ASEAN Plus agreements into Regional Comprehensive Economic Partnership (RCEP). Under thiscircumstance, the ASEAN members need to distinguish how the difference in comparative advantage of each export commodity affects and influences the pattern of ASEAN’s non-oil exports. This study attempts to identify the impact of comparative advantage, represented by Normalized Revealed Comparative Advantage (NRCA) index, on the non-oil export pattern of the ASEAN countries using the augmented gravity model as its research method. The results indicate that comparative advantage has a positive influence on ASEAN’s non-oil exports and that the comparative advantages in agricultural commodities have the biggest influence.

Keywords: seaport status; distance; regional economic development; seaport access; Indonesia (search for similar items in EconPapers)
Pages: 29 pages
Date: 2016-05, Revised 2016-05
New Economics Papers: this item is included in nep-int and nep-sea
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Citations: View citations in EconPapers (1)

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