Gravity Model Analysis on Indonesia’s Trade to ASEAN and China

Ivori Geovani Putri () and Doni Satria
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Ivori Geovani Putri: Univesitas Negeri Padang
Doni Satria: Univesitas Negeri Padang

A chapter in Proceedings of the 10th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-10 2022), 2025, pp 480-490 from Springer

Abstract: Abstract This study seeks to examine the influence of the Gravity Model on intra-ASEAN trade by utilizing two research models: export and import. A quantitative descriptive approach was employed, with the Gravity Model analyzed through panel data regression techniques. The findings indicate that the independent variables account for 80.46% of the variance in Indonesia’s export model to ASEAN and China. Specifically, distance negatively impacts Indonesia’s exports to these regions, while GDP and population exert a positive influence. The exchange rate, however, shows no effect on exports. In contrast, the independent variables explain 43.41% of the variance in Indonesia’s import model from ASEAN and China. Distance and exchange rate have no significant impact on imports, whereas GDP and population positively affect Indonesia’s imports from these regions.

Keywords: Gravity Model; Export; Import; ASEAN (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-839-4_41

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DOI: 10.2991/978-94-6463-839-4_41

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