Journal of Applied Economics in Developing Countries
Vol 5, No 1 (2020): Journal of Applied Economics in Developing Countries

THE EFFECT OF ECONOMIC OPENNESS, DEMOCRACY, AND INSTITUTIONAL QUALITY ON INDONESIA EXPORTS TO ASEAN PLUS THREE

Wikantioso Wikantioso (Universitas Padjadjaran)



Article Info

Publish Date
01 Mar 2020

Abstract

The ASEAN Charter Agreement and the cooperation of the East Asia Free Trade Area ASEAN+3 provide momentum for ASEAN countries to increase economic openness, strengthen the application of democratic principles, and improve institutional quality to enhance trade cooperation. This study aims to explore the role of economic openness, democracy, and institutional quality in increasing Indonesia's exports to ASEAN countries plus three during the 1996-2017 period using the augmented gravity model. The results showed that the openness of ASEAN+3 to trade (trade% of GDP), democracy, and institutional quality of Indonesia and ASEAN+3 as Indonesia's export destination had positive effects in increasing  Indonesia's exports to ASEAN+3. However foreign direct investment in Indonesia and ASEAN+3 does not affect the export.Keywords: Indonesia Trade Gravity Model, Economic Openness, Democracy, Governance Institution, Indonesia's export, ASEAN+3

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Journal Info

Abbrev

jaedc

Publisher

Subject

Economics, Econometrics & Finance

Description

FOCUS This journal focused on economics, business, and management in developing countries studies and presents developments through the publication of articles and research reports. SCOPE The Journal of Applied Economics in Developing Countries (JAEDC) specializes on Economics, Business, and ...