Regional Economic Improvement Model through Integration of West Sumateran Rubber Market with ASEAN Regional Market

Ansofino, Ansofino; Zusmelia, Zusmelia; Malinda, Yola; Dahen, Lovely Dwinda

doi:10.2991/sores-18.2019.108

“…The State of Singapore is the centre of integration of Indonesia's rubber trade with ASEAN countries is reasonable, because in 3.4 above, it appears that the ratio of Singapore's rubber trade value far exceeds the ratio of the value of rubber trade with Malaysian GDP. That is why, Singapore is a price taker in Indonesia's rubber trade in ASEAN, this is in line with the findings of Ansofino's research which states that the country that captures the greatest value added in Indonesia's rubber trade is Singapore [17][18][19].…”

Section: Resultssupporting

confidence: 78%

Can Trade Integration Lead to Economic Development Convergence?

Ansofino¹,

Zusmelia²,

Dahen³

et al. 2020

Proceedings of the 2nd Social and Humaniora Research Symposium (SoRes 2019)

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The main focus of this research is to analyse the integration of Indonesia's rubber trade with countries in the ASEAN region and how this trade integration affects the convergence of development. The analysis method used is the principal analysis method that measures the integration of Indonesia's rubber trade with the ASEAN region, and the fixed effect method approach to examine the impact of trade integration on regional economic development convergence. The results showed that the greater integration of Indonesia's rubber trade with ASEAN countries was marked by the principal value of its component analysis, which grew from 1989 to 2017. Increased integration of this rubber trade with the ASEAN region is also very dependent on regional and global economic conditions, when regional and global economies experience a decline, the intensity of Indonesia's rubber trade also fluctuates towards decreasing. Changes in economic progress shown by changes in the value of GDP greatly affect the strength of integration of Indonesia's rubber trade with the country concerned, changes in the value of GDP of rubber export destination countries have led to the convergence of Indonesia's economy with Singapore, Thailand and Vietnam, and experienced divergence with Malaysia and the Philippines.

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“…Furthermore, this study also looks at the influence of two types of spatial effects: spatial dependence and heterogeneity (Porojan, 2001;Anselin, 1988; Anselin and Rey, 2012; Anselin and Arribas, 2013). This exploration is problematic for regression models using the ordinary least square (OLS) method, which is related to heteroscedasticity [7] Global 4) above, so that it becomes as follows:…”

Section: Methodsmentioning

confidence: 99%

“…The involvement and hegemony of the West Coast Harbour area of West Sumatra; starting from the South, Port of Indrapuro, Salido, Teluk Bayur, Pariaman, Tiku, to the northernmost coastal area, namely Air Bangis in playing an important role in international trade routes in the West Coast Region of Sumatra, with Aceh, Gujarat, the Malacca Strait, and even up to Sunda Kelapa Harbour in Banten. However, at this time, its role as a trade centre for the West Coast region has begun to diminish with the lack of integration of trade in the interior of West Sumatra with other regencies and cities, and the lack of integration of trade in West Sumatra with other cities and towns the economic corridor of Sumatra and ASEAN, so that the trade competitiveness of the main commodities of the province of West Sumatra is low and its economic value added is captured by external regions and neighbouring countries (Ansofino et al, 2019;Ansonfino et al, 2021). The factor causing the uncompetitive trade of the main commodities of the province of West Sumatra in the economic corridor area is due to the low added value of the commodities produced, so that this added value is captured by external trading partners in the trading system.…”

Section: Introductionmentioning

confidence: 99%

Global Competitiveness of Trade in the West Coast of Sumatra from the Perspective of the Agglomeration of Economic Approach

Ansofino,

Zusmelia

2023

AOL

0

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The main aim of this study is to analysed the pattern of agglomeration of trade flows in the city of Padang and Teluk Bayur Port with the regencies and cities along the west coast of Sumatra, as well as the factors that influence them. How competitive is trade flow with the West coast region compared to the East coast of Sumatra. The analytical approach used is spatial econometrics, especially the spatial lag model and spatial error model. The data used is the volume of loading and unloading of inter-island and foreign ships at Teluk Bayur Port and other districts and cities in 133 areas on the West Coast and 155 districts and cities in the economic corridors of Sumatra. The results showed that the West Coast trade flow variable had no significant effect on the existence of Padang City as the centre of economic agglomeration in the economic corridor area of Sumatra. Our findings are that trade flows in the city of Padang have not been able to encourage economic agglomeration in regencies and cities on the West Coast of Sumatra, on the contrary there are connections with regencies and cities in the economic corridors of the East Coast of Sumatra. Therefore, to accelerate the process of economic agglomeration through trade flows, joint policies are needed with the agricultural sector in the Sumatran economic corridor in facing global market competition, as well as strengthening inter-regional internal markets in the Sumatra corridor, agricultural commodity transactions between regencies and cities in the Sumatran economic corridor which must be strengthened, so as to be able to compete in a competitive global market.

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“…Furthermore, this study also looks at the influence of two types of spatial effects: spatial dependence and heterogeneity (Porojan, 2001;Anselin, 1988; Anselin and Rey, 2012; Anselin and Arribas, 2013). This exploration is problematic for regression models using the ordinary least square (OLS) method, which is related to heteroscedasticity [7] Global 4) above, so that it becomes as follows:…”

Section: Methodsmentioning

confidence: 99%

Global Competitiveness of Trade in the West Coast of Sumatra from the Perspective of the Agglomeration of Economic Approach

Ansofino,

Zusmelia

2023

AOL

0

View full text Add to dashboard Cite

The main aim of this study is to analysed the pattern of agglomeration of trade flows in the city of Padang and Teluk Bayur Port with the regencies and cities along the west coast of Sumatra, as well as the factors that influence them. How competitive is trade flow with the West coast region compared to the East coast of Sumatra. The analytical approach used is spatial econometrics, especially the spatial lag model and spatial error model. The data used is the volume of loading and unloading of inter-island and foreign ships at Teluk Bayur Port and other districts and cities in 133 areas on the West Coast and 155 districts and cities in the economic corridors of Sumatra. The results showed that the West Coast trade flow variable had no significant effect on the existence of Padang City as the centre of economic agglomeration in the economic corridor area of Sumatra. Our findings are that trade flows in the city of Padang have not been able to encourage economic agglomeration in regencies and cities on the West Coast of Sumatra, on the contrary there are connections with regencies and cities in the economic corridors of the East Coast of Sumatra. Therefore, to accelerate the process of economic agglomeration through trade flows, joint policies are needed with the agricultural sector in the Sumatran economic corridor in facing global market competition, as well as strengthening inter-regional internal markets in the Sumatra corridor, agricultural commodity transactions between regencies and cities in the Sumatran economic corridor which must be strengthened, so as to be able to compete in a competitive global market.

show abstract

Regional Economic Improvement Model through Integration of West Sumateran Rubber Market with ASEAN Regional Market

Cited by 4 publications

References 11 publications

Can Trade Integration Lead to Economic Development Convergence?

Can Trade Integration Lead to Economic Development Convergence?

Global Competitiveness of Trade in the West Coast of Sumatra from the Perspective of the Agglomeration of Economic Approach

Global Competitiveness of Trade in the West Coast of Sumatra from the Perspective of the Agglomeration of Economic Approach

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