Analysis Trade Integration of Indonesia and Turkey Non-Oil Sector

Abstract

The development of the economy and the increasingly rapid level of world economic integration have an impact on the high intensity of trade dynamics between countries which then has an impact on increasing trade in the same sector (Intra-Industrial Trade) so that a market diversification strategy is needed in the form of market alternatives. The purpose of this study was to determine how much the intensity of t rade integration and the dynamics of non-oil and gas exports between Indonesia and Turkey during the period 2001-2016. The results of the analysis using the Gruble Lloyd Index (GLI) show t he i ntensi ty of t rade between Indonesia and Turkey is classified in the category of Weak Integration with a percentage of 66% of the total commodities traded. This shows that the trade that occurs tends t o be one -way. Whi le t he Constant Market Share (CMS) analysis shows that each trading period has fl uctuated. In t he t rading period of 2002 to 2007 then in 2010 and 2013 experienced positive changes in the value of exports, whi l e in 2008, 2009, 2011, 2012 and 2014 until 2016 experienced a change i n negati ve export values. Thi s indicates that the market share Indonesia's Natara and Turkish trade tends to weaken.