THE FUNDAMENTAL PATTERNS OF COMPARATIVE ADVANTAGE OF STEEL INDUSTRY IN INDONESIA

  • Niki Barenda Sari Ministry of Trade
  • Nagendra Shrestha Yokohama National University
  • Craig Parsons Yokohama National University
DOI: https://doi.org/10.30908/bilp.v14i1.408
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Keywords: Comparative Advantage, Productivity, Steel Industry, Keunggulan Komparatif, Produktivitas, Industri Baja

Abstract

Abstrak

Pengukuran produktivitas yang akurat dapat memberikan informasi yang berguna dalam meningkatkan daya saing. Oleh karena itu, penting untuk memahami perbedaan dalam produktivitas relatif antar-negara. Hal ini memungkinkan negara untuk fokus dan berspesialisasi dalam produk-produk mereka yang relatif lebih produktif. Penelitian ini bertujuan untuk menganalisis pola dasar keunggulan komparatif, dengan industri baja Indonesia sebagai fokus analisis. Penelitian ini menggunakan analisis RCA berbasis regresi dengan metode variabel instrumen (instrument variable/IV) yang menggunakan data ekspor dari 25 negara ke 35 negara tujuan dari tahun 2010-2017. Hasil penelitian menunjukkan bahwa Indonesia memiliki keunggulan komparatif terkuat di industri baja di antara negara-negara ASEAN. Meskipun industri baja adalah industri ke-27 dalam peringkat nilai keunggulan komparatif dalam negeri Indonesia, ada beberapa produk yang memiliki keunggulan komparatif yang kuat dan bahkan memiliki posisi yang kuat secara internasional. Selain itu, penting untuk mengikutsertakan beberapa negara ASEAN sebagai observasi dalam mengestimasi parameter kunci produktivitas karena menghasilkan estimasi baru θ, yang masih sejalan dengan literatur yang ada.

 

Abstract

Accurate productivity measurements can provide useful information in improving competitiveness. Therefore, it is important to understand the differences in relative productivity among countries, allowing countries to focus and specialize in their relatively more productive products. This study aims to analyze the fundamental patterns of comparative advantage, with the Indonesian steel industry as the focus of analysis. This research uses the regression-based method of revealed comparative advantage (RCA) analysis with an instrument variable (IV) method that employs export data from 25 exporting countries to 35 destination countries during 2010 - 2017. The result shows that Indonesia has the strongest comparative advantage in the steel industry among the ASEAN countries. Even though the steel industry is ranked 27th in Indonesia’s comparative advantage values, several products have a strong comparative advantage and even a strong position internationally. In addition, it is worth including some ASEAN countries in the observation of estimating the key parameter of productivity, while not the main focus of the paper, yields a new estimate of θ, which is still in line with the literature.

JEL Classification: F11, F13, F14

Author Biographies

Nagendra Shrestha, Yokohama National University

Graduate School of International Social Science

Craig Parsons, Yokohama National University

Graduate School of International Social Science

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Published
2020-07-15
How to Cite
Sari, N. B., Shrestha, N., & Parsons, C. (2020). THE FUNDAMENTAL PATTERNS OF COMPARATIVE ADVANTAGE OF STEEL INDUSTRY IN INDONESIA. Buletin Ilmiah Litbang Perdagangan, 14(1), 75-94. https://doi.org/10.30908/bilp.v14i1.408
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Articles