Journal of Indonesian Applied Economics
Vol. 7 No. 2 (2017)

INVESTIGATING INDONESIA’S ENERGY TRADE EFFICIENCY: GRAVITY AND MALMQUIST INDEX APPROACH

Desti Candrasari (Department of Economics, Faculty of Economics and Business University of Brawijaya, Indonesia, Indonesia)
Putu Mahardika Adi Saputra (Department of Economics, Faculty of Economics and Business University of Brawijaya, Indonesia, Indonesia)



Article Info

Publish Date
12 Apr 2018

Abstract

This paper applies Gravity and Malmquist index approach to investigate energy trade efficiency between Indonesia and East Asia Countries (i.e. Japan, South Korea, and China). Gravity model is employed to identify the inputs that will be used in computing the energy trade efficiency; meanwhile, Malmquist index approach to identify the energy trade efficiency by taking data from 2000-2015. One of the findings shows that the considered inputs that will be utilised are population of importer countries, Indonesian population, relative distance, and ratio of added value of industry sector towards GDP. In addition, the energy trade efficiency between Indonesia and East Asia countries from 2000 to 2015 was composed by technical change or technical/ potential change. China averagely had the highest efficiency and showed improvement like South Korea did. Japan showed, on the other hand, deterioration.

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Journal Info

Abbrev

jiae

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Indonesian Applied Economics (JIAE) is an online journal sponsored by the Faculty of Economics and Bussiness, Universitas Brawijaya. The purpose of this journal is to enhance the study of economic issues on all aspects of applied economics and ...