Impact Analysis of Rules of Origin on Indonesia Export Performance: Case Study on Indonesia-Japan
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Published:
Dec 2, 2024
Keywords:
Eksport, FTA, International Trade, Japan, Rules of Origin.
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Abstract
Japan is one of main Indonesia’s trading partners. This research aims to analyse the impact of ROO’s restrictiveness on the Indonesia export performance and the utilisation of preferential schemes for both IJEPA and AJCEP. This study constructs ROO Index based on Product Specific Rules (PSR), as proxy of ROO, at 6-digit HS level to measure the restrictiveness level. This research found that the restrictiveness of ROO has a negative impact on total exports and utilisation for both FTAs. Increasing rate of applied tariff would reduces the total export, while the rate of margin tariff positifely impacts the utilisation rate. Providing facilitative PSR would likely improve export performance and utilisation of international trade agreements.
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How to Cite
Andiani, D. (2024). Impact Analysis of Rules of Origin on Indonesia Export Performance: Case Study on Indonesia-Japan. Cendekia Niaga, 8(2), 134-145. https://doi.org/10.52391/jcn.v8i2.902
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References
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Artuc Erhan (2013). PPML Estimation of Dynamic Discrete Choice Models with Aggregate Shocks. Policy Research Working Paper 6480.
Baldwin, R., Kawai, M., & 431, N. (2013). ADBI Working Paper Series Multilateralizing Asian Regionalism Asian Development Bank Institute.
Cadot, O., & Ing, L. Y. (2014). How Restrictive Are ASEAN’s RoO? ERIA Discussion Paper 2014-18.
Conconi, P., García-Santana, M., Puccio, L., Venturini, R., Antràs, P., Blanchard, E., Bown, C., Faber, B., Grossman, G., Johnson, R., Kee, H. L., Krishna, K., Lake, J., Mavroidis, P., Peitz, M., Sapir, A., Gse, B., & Puccio, C. L. (2017). From Final Goods to Inputs: The Protectionist Effect of Rules of Origin. CEPR Discussion Paper, 2016/11084.
Correia, S., Guimarães, P., & Zylkin, T. (2020). Fast Poisson estimation with high-dimensional fixed effects. The Stata JournalVolume 20.
Demidova, S., Kee, H. L., & Krishna, K. (2012). Do trade policy differences induce sorting? Theory and evidence from Bangladeshi apparel exporters. Journal of International Economics, 87(2), 247–261.
Estevadeordal, A., Suominen, K., & Estevadeordal antonie, A. (2004). Rules of Origin: A World Map and Trade Effects.
Falianty, T. A. (2018). Pemanfaatan Kerjasama Indonesia-Jepang Economic Partnership Agreement (IJEPA) dan Indonesia–Pakistan Preferential trade Agreement (IPPTA). Buletin Ilmiah Litbang Perdagangan.
Gocklas C.S, L. Sulasmiyati, Sri. (2017). Analisis Pengaruh Indonesia-Japan Economic Partnership Agreement (IJEPA) Terhadap Nilai Perdagangan Indonesia-Jepang. Jurnal Administrasi Bisnis (JAB), Vol: 5(5), halaman 191- 200
Hayakawa, K. (2022). Multiple preference regimes and rules of origin. Review of World Economics.
Hayakawa, K., Laksanapanyakul, N., & Shiino, K. (2013). Some Practical Guidance for the Computation of Free Trade Agreement Utilization Rates. IDE Discussion Paper No. 438.
Hayakawa, K., Laksanapanyakul, N. (2017). Impacts of common rules of origin on FTA utilization. International Economics and Economic Policy, 14(1), 75–90.
Ing, Lili Yan., Urata, S., Fukunaga, Y. (2016). How Do Exports and Imports Affect the Use of Free Trade Agreements? Firm-level Survey Evidence from Southeast Asia, ERIA Discussion Paper Series, ERIA-DP- 2016-01.
Keck, Alexander; Lendle, Andreas (2012). New Evidence on Preference Utilization, WTO Staff Working Paper, No. ERSD-2012-12.
Kementrian Keuangan. (2011). Free trade agreement (FTA) dan economic partnership agreement (EPA), dan pengaruhnya terhadap arus perdagangan dan investasi dengan negara mitra.
Lee, H. (2016). Do Preferential Rules of Origin Reverse Trade Creation and Trade Diversion? International Economic Journal, 30(4), 429–449.
Maggi, G., & Rodríguez-Clare, A. (1998). The value of trade agreements in the presence of political pressures. Journal of Political Economy, 106(3), 574–601.
Okabe, Misa. (2015). ‘Impact of Free Trade Agreements on Trade in East Asia’, ERIA Discussion paper Series, ERIA- DP-2015-01
Salvatore, D. (1990). Theory and Problem of International Economic (Teori dan Soal-Soal Ekonomi Internasional, alih bahasa: Rudy Sitompul) Edisi ke-2. Jakarta: Erlangga.
Salvatore D. (1996). Ekonomi Internasional 5th ed. Jakarta: Erlangga.
Sitepu, E.M.P., Nurhidayat, R. (2015). Mengukur Tingkat Pemanfaatan FTA yang telah dilakukan Indonesia: Studi Kasus dengan Menggunakan FTA Preferences Indicator. Kajian Ekonomi dan Keuangan, Volume 19, No.3 halaman 284-298.
Tanaka, K., & Fukunishi, T. (2022). Rules of origin and exports in developing economies: The case of garment products. Journal of Asian Economics, 82.