The impact and prospects of trade between South Sumatera and China

Bernadette Robiani
Additional contact information
Bernadette Robiani: Faculty of Economics, Sriwijaya University, South Sumatera, Indonesia

Philippine Review of Economics, 2006, vol. 43, issue 1, 97-108

Abstract: Trade relations between South Sumatera and China began as far back as 800 AD, during the period of the Sriwijaya Kingdom, known as South Sumatera’s ancient city. To this day, South Sumatera has continued that trade relationship, even during the years when relations between Indonesia and China had been restricted by the Indonesian government for political reasons. Globalization and the thrust toward decentralization are pushing South Sumatera to improve its international trade performance in a bid to increase provincial revenue. Statistics show an increase of as much as 67 percent in South Sumatera’s exports for the period 2002-2004. China’s contribution to that increase is 35.8 percent in 2002, rising to 42.9 percent in 2004. The major commodities being exported to China are rubber, plywood, crude kernel palm oil, and refined bleached deodorized (RBD) stearin. South Sumatera’s imports from China during the same period also show an increase of about 28 percent. This paper analyses the impact and prospects of South Sumateran trade with China. It is hoped that the increasing export to China would stimulate local economic activities, such as increasing the number of various commodities, labor absorption, and local and foreign investment, to boost the province’s economic growth and improve revenue. On the other hand, the increase in importation from China can be a threat to local industries in South Sumatera in terms of the amount of production and labor absorption.

Keywords: export; import; labor absorption (search for similar items in EconPapers)
JEL-codes: F14 F59 (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations:

Downloads: (external link)
http://pre.econ.upd.edu.ph/index.php/pre/article/view/239/617 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:phs:prejrn:v:43:y:2006:i:1:p:97-108

Access Statistics for this article

More articles in Philippine Review of Economics from University of the Philippines School of Economics and Philippine Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by HR Rabe ().