The Intensity of the Food Processing Industry Products Trade between Indonesia-China

Abstract

Economic globalization is characterized by the depletion of the geographic boundaries of a country's economic activity has prompted increasing economic interdependence. International trade is one of the important aspects in the economy of a country. The type of data in this research is secondary data and the form of time series in the 2005-2013 year periodicity, which can be obtained from literature Bank Indonesia, Statistics Indonesia Trade Processing several editions in particular classes of food processing industry, Indonesian export data published by BPS, some edition. This analysis will be applied to the exports of processing trade imports, especially food processing industry group based on the International Standard Industrial Classification (ISIC), and wherein the 3-digit level . The analysis consists of: (1) Analysis of Intra-Industry Trade; (2) Analysis of Error Correction Model (Error Correction Model/ECM ) . The intensity of intra - industry trade between Indonesian food processing with China in 2005-2013 we got the result that the total units of study, in this case Indonesia and China are seven units of study are categorized commodity remaining intra-industry trade is a commodity category inter - industry trade. ECM short-term in research, in general or simultaneous independent variables significantly affect intra-industry trade as the long-term ECM estimation results in research that has no relation to the movement of intra-industry trade between Indonesia and China. Thus, it is less precise when it is applied in Indonesia.