The Study of trade, investment, and global value chain on the fisheries gross domestic product in Indonesia: panel vector autoregressive (PVAR) model approach

Abstract

This study aims to analyze the indicators that play a role in the Indonesian marine and fisheries sector in its development towards GVC. The condition of the fisheries sector in Indonesia has not become a key sector even though it is a producer of capture fisheries, in addition to other threats in the form of communication, technology, and regulations that specifically hamper productivity. The research method used to achieve the research objectives is the panel vector autoregressive (PVAR) method. The variables involved in the research are GDP Fishery, Fish Production, Trade Openness, Export and Import of Fishery, GVC participation, Foreign Direct Investment, and Domestic Investment. The results of the PVAR estimation at lag 1 show that the variables that have a significant influence on Fishery's GDP are Fishery's GDP, Fish Production, GVC participation, and Domestic Investment. Thus, there is a need for an effective maritime policy to reduce the environmental impact of the development of coastal resources and preserve the diversity of fish production to face future threats. This is due to the constraints of international trade in the form of information or communication, technology and regulations. JEL Classification: Q22, O47, P25, C33