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All Journal JEJAK AFEBI Economic and Finance Review KEK (Kajian Ekonomi dan Keuangan) Budapest International Research and Critics Institute-Journal (BIRCI-Journal): Humanities and Social Sciences Indonesian Capital Market Review Jurnal Kebijakan Ekonomi International Journal of Applied and Advanced Multidisciplinary Research (IJAAMR)
Telisa Aulia Falianty
MPKP FEB UI
Religion Arts Humanities Civil Engineering, Building, Construction & Architecture Economics, Econometrics & Finance Education Energy Environmental Science Public Health Social Sciences

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The Different Role of Innovation on Indonesian Intra Industry Trade Alfarisi, Salman; Falianty, Telisa Aulia
Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences Vol 5, No 1 (2022): Budapest International Research and Critics Institute February
Publisher : Budapest International Research and Critics University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33258/birci.v5i1.3577

Abstract

This study aims to look at the role of differences in innovation between Indonesia and sixty selected partner countries in encouraging bilateral intra-industrial trade (IIT) in the 2009-2017 period with the fixed effect model estimation method (FEM). The innovations in other research generally use RnD spending, number of patents, and other cost-based variables. Whereas in this study using the Global Innovation Index score with the hope of capturing the level of innovation of each country more comprehensively. The results showed that the difference in innovation (DGII) was proven positively and significantly in encouraging IIT Indonesia and partner countries. Control variables, Economic openness (OPEN), GDP average (AGDP), differences in per capita income (DGDPC), and foreign direct investment (FDI) are known to have a positive and significant role in driving IIT. While another control variables, trade cost (TC) have a negative and significant effect in encouraging IIT. 
Co-Authors Andaiyani, Sri Luthfi Hanifah, Luthfi MUAROFAH, SITI Murtama, Abram Julion Sahetapy, Everd Hardus Salman Alfarisi Shinta Dewi Perwitasari Sholihah, Ita Kurnia Wicaksono, Retno Puspita K. Yudotaruno, Taukhid