Intelligent evaluation of trade efficiency of agricultural products between China and ASEAN: An stochastic frontier approach with noise reduction

2021 ◽  
pp. 1-10
Author(s):  
Shuaiwen Wang
Keyword(s):  
Free Trade ◽  
Stochastic Frontier ◽  
Free Trade Area ◽  
Agricultural Products ◽  
Agricultural Product ◽  
Random Disturbance ◽  
Test Plot ◽  
Trade Area ◽  
Asean Countries ◽  
The Impact

As the world’s largest free trade area among developing countries, the China-ASEAN Free Trade Area has gone through 15 years, and the China-ASEAN (Association of Southeast Asian Nations) Free Trade Area cooperation framework with tariff reduction as the core has diminished incentive effects on regional trade, the “21st Century Maritime Silk Road” strategy provide new opportunities for the upgrading and development of the China-ASEAN Free Trade Area. Based on the stochastic frontier gravity model, the random disturbance term was introduced to overcome the inevitable noise problem of macro statistical data, the trade efficiency of agricultural products between China and ASEAN were estimated in this study. The result shows that the potential for trade promotion between China and ASEAN countries is fully tapped. Based on this, it is proposed to strengthen infrastructure construction and smooth maritime trade channels with the help of the “One Road” platform. Strengthen communication and dialogue to weaken the impact of non-tariff barriers on trade, and use the Shanghai Free Trade Zone test plot to enhance the international competitiveness of Chinese agricultural product trade.

scholarly journals ASEAN Free Trade Area (AFTA), Otonomi Daerah dan Daya Saing Perdagangan Komoditas Pertanian Indonesia

2016 ◽  
Vol 21 (1) ◽  
pp. 1
Author(s):  
Iwan Setiajie Anugrah
Keyword(s):  
Free Trade ◽  
Market Competition ◽  
Free Trade Area ◽  
Agricultural Product ◽  
Regional Autonomy ◽  
Trade Area ◽  
Asean Countries ◽  
The Government ◽  
Competitive Products

<strong>English</strong><br />Asean Free Trade Area (AFTA) is a regional trade cooperation of ASEAN countries intended to boost trade volumes through tariff decrease of specific commodities including those of agriculture. AFTA is scheduled in 2008 but it is implemented earlier in 2003. This is a promising opportunity for Indonesia to boost agricultural product export and a challenge to produce competitive products at the regional level. Some constraints to solve by the government of Indonesia are quality products, limited capital, price and exchange rate policies, market competition, and instable domestic political setting. Implementation of regional autonomy is expected to improve quality of agricultural products to compete in regional and global markets. It will improve farmers’ welfare and local government incomes.<br /><br /><br /><strong>Indonesian</strong><br />Asean Free Trade Area (AFTA) merupakan bentuk kerjasama perdagangan di wilayah negara-negara ASEAN yang mempunyai tujuan untuk meningkatkan volume perdagangan di antara negara anggota melalui penurunan tarif beberapa komoditas tertentu, termasuk di dalamnya beberapa komoditas pertanian, dengan tarif mendekati 0-5 persen. Dalam kesepakatan, AFTA mulai efektif pada tahun 2008 namun dalam perkembangannya dipercepat menjadi tahun 2003. Bagi Indonesia, kerjasama AFTA merupakan peluang yang cukup terbuka bagi kegiatan ekspor komoditas pertanian yang selama ini dihasilkan dan sekaligus menjadi tantangan untuk menghasilkan komoditas yang kompetitif di pasar regional AFTA. Upaya ke arah itu, nampaknya masih memerlukan perhatian serta kebijakan yang lebih serius dari pemerintah maupun para pelaku agribisnis, mengingat beberapa komoditas pertanian Indonesia saat ini maupun di masa yang akan datang masih akan selalu dihadapkan pada persoalan-persoalan dalam peningkatan produksi yang berkualitas, permodalan, kebijakan harga dan nilai tukar serta persaingan pasar di samping iklim politis yang tidak kondusif bagi sektor pertanian. Diharapkan dengan diberlakukannya otonomi daerah perhatian pada sektor agribisnis dapat menjadi salah satu dorongan bagi peningkatan kualitas produk pertanian sehingga lebih kompetitif di pasar lokal, regional maupun pasar global, dan sekaligus memberikan dampak positif bagi perekonomian nasional maupun peningkatan pendapatan petani dan pembangunan daerah.

scholarly journals South Asian Free Trade Area and Indo-Pakistan Trade

2004 ◽  
Vol 43 (4II) ◽  
pp. 943-958
Author(s):  
Indra Nath Mukherji
Keyword(s):  
Free Trade ◽  
South Asian ◽  
Free Trade Area ◽  
Trade Liberalisation ◽  
Trade Restrictions ◽  
Regional Trade ◽  
Common External Tariff ◽  
Trade Area ◽  
Preferential Trading ◽  
The Impact

Preferential trading is one of the mildest forms of an integrative arrangement. Under the arrangement, the Contracting States (CS) offer a preferential margin with respect to trade barriers in relation to their MFN rates. CS having disparate levels of development as well as trade regimes, find this an acceptable instrument for initiating regional trade liberalisation. Such an arrangement nevertheless provides the building blocks towards accelerated regional trade liberalisation culminating in a free trade area within a defined time frame. Under a free trade area the CS eliminate all trade restrictions on their mutual trade, while maintaining restrictions in their trade with non-CS at a level they deem appropriate. When all CS decide on a common external tariff, then the arrangement translates itself in a more cohesive customs union. The arrangement translates to a common market when all CS agree not only to allow free movement of goods and services, but all the factors of production including capital and labour. Finally, the most comprehensive form of an integrative arrangement results from an economic union, which integrates national economic policies of CS and leads to the adoption of a common currency. The Agreement on South Asian Preferential Trading Arrangement (SAPTA), which became operational since December 7th, 1995 thus, symbolises the beginnings of the very first stage of an integrative arrangement among the member countries of SAARC. The decision made at the Twelfth SAARC Summit at Islamabad in January 2004 to launch South Asian Free Trade Agreement (SAFTA) from January 2006 would mark the second stage of the process of integration in the region. The main focus of this paper is to assess the impact of SAPTA on Indo-Pak trade.

Academic Research and Canadian Manufacturing Productivity since the Formation of NAFTA

2007 ◽  
Vol 21 (2) ◽  
pp. 145-158
Author(s):  
James Brox
Keyword(s):  
Free Trade ◽  
Positive Impact ◽  
Academic Research ◽  
Free Trade Area ◽  
Variable Cost ◽  
Trade Area ◽  
The North ◽  
Canadian Manufacturing ◽  
Manufacturing Productivity ◽  
The Impact

Does academic research have a positive impact on productivity? To examine this question, the paper focuses on national Canadian manufacturing data, using a variable-cost CES-translog cost system. Changes in the elasticities calculated from the estimation results allow the study of the impact of the free-trade agreements on Canadian production and the effects of academic R&D expenditures. The principal finding is that academic research expenditures have had a positive effect on Canadian manufacturing productivity and that this effect of R&D expenditures has become stronger since the formation of the North American Free Trade Area (NAFTA).

scholarly journals IS ACFTA A PROPER STRATEGY OF SUSTAINABLE POVERTY ALLEVIATION?: PROOF FROM THE DEPLETION OF SAVING RATE

2010 ◽  
Vol 13 (1) ◽  
pp. 75-102
Author(s):  
Bagus Arya Wirapati ◽  
Niken Astria Sakina Kusumawardhani
Keyword(s):  
Free Trade ◽  
Poverty Alleviation ◽  
Free Trade Area ◽  
Purchasing Power ◽  
Saving Rate ◽  
Trade Area ◽  
Dynamic Relationship ◽  
Per Capita ◽  
Potential Impact ◽  
The Impact

The outcome of Regional Free Trade Area (R-FTA) still remains a conundrum. Regional free trade area (R-FTA) is one of the manifestations of the economy integration phenomenon. R-FTA brings many pros and cons to the economists. It allows better allocation of resources especially by eliminating tariffs, thus making people have higher purchasing power for goods. While the increase of purchasing power is good for growth engine and poverty alleviation progress, this paper proves that there is potency for the agreement to be detrimental in the long run.The main focus in this paper is the potential impact of ACFTA to the saving rate as the shock buffer for the poor in time of recessions and crises, where purchasing power decreases significantly. We view the ACFTA impact through the series of net import, defined as the difference between imports from export. We use Dynamic Panel Data (DPD) to estimate the impact of net import to the saving rate, assuming that there is a dynamic relationship between saving rate and its lagged value. The estimation result proves that there is a negative relationship between import and the saving per capita, which indicates the consumptive behavior of ASEAN people under high import. Moreover, the dynamic relationship shows that saving per capita is not persistent, meaning that the saving rate will be decreased gradually.Therefore, we can expect that in the long rung, the savings will be depleted into nothing if we keep letting the import flooded domestic market without imposing any pre-emptive and reactive policies. This paper provides a set of historical estimation of the potential impact of ACFTA on saving rate and its policy implication to endure the impact.JEL Classification Code: E38, F15Keywords: Free Trade, Poverty Alleviation, Saving Behavior

scholarly journals The Effect of ASEAN-China Free Trade Area (ACFTA) on Indonesia Export

ETIKONOMI ◽  
2016 ◽  
Vol 15 (2) ◽  
pp. 125-138
Author(s):  
Indriyani Indriyani
Keyword(s):  
Panel Data ◽  
Free Trade ◽  
Cross Section ◽  
Data Model ◽  
Free Trade Area ◽  
Fixed Effect ◽  
Panel Data Model ◽  
Phnom Penh ◽  
Trade Area ◽  
Asean Countries

ASEAN-China Free Trade Area (ACFTA) is an agreement between the members of ASEAN and China to create a free trade area by removing tariff and non-tariff barriers. This agreement begins with the signing of the agreement on November 5, 2002 in Phnom Penh. Implementation is done in phases beginning January 1, 2004. The purpose of this study determines the effect of the implementation of ACFTA on Indonesia's exports to the ASEAN countries and China. This study complements previous research regarding the ACFTA. The data used in this study are the data of Indonesian exports to ASEAN countries and China for 15 years from 2000 until 2014. The tests were conducted with a fixed effect panel data model with cross section SUR. The results of this study indicate that the ACFTA increase Indonesian exports to the ASEAN countries and China.DOI: 10.15408/etk.v15i2.3331

scholarly journals Indonesia dan Persaingan di Era Asean Economic Community

2018 ◽  
Vol 2 (2) ◽  
Author(s):  
Hendra Maujana Saragih
Keyword(s):  
Free Trade ◽  
Free Trade Area ◽  
Economic Opportunity ◽  
Economic Community ◽  
Trade Area ◽  
Asean Member ◽  
Systemic Impact ◽  
Strategic Position ◽  
Asean Countries ◽  
Asean Economic Community

Abstract This paper focusing on looking at Indonesia's readiness to deal with the Era of the Economic Community in ASEAN with the urgency that Indonesia's preparations should have a systemic impact on Indonesia's economic growth. The socialization that has been carried out continues and continues to be inflated by every child of the nation so as not to lose compete and be swallowed by the existence of regional countries that really use ASEAN Economic Community as a positive and constructive economic opportunity for each ASEAN member country officially. ASEAN Economic Community is one form of Free Trade Area (FTA) and located in Southeast Asia .ASEAN Economic Community which is formed with a mission to make the economy in ASEAN to be better and able to compete with countries whose economy is more advanced than the condition of ASEAN countries currently. The realization of ASEAN Economic Community, can make ASEAN a more strategic position in the international arena. Researchers expect that with the realization of the ASEAN economic community can open the eyes of all parties, resulting in an inter-sectoral dialogue that will also complement each other among the stakeholders of the economic sector in ASEAN countries and this is very inherent formally. Keywords: Competition, Free Trade Area, Opportunity, Challenge

scholarly journals Does AFTA Create or Divert Trade?

2007 ◽  
Vol 7 (4) ◽  
pp. 1850122 ◽  
Author(s):  
Helen Cabalu ◽  
Cristina Alfonso
Keyword(s):  
Trade Liberalization ◽  
Free Trade ◽  
Free Trade Area ◽  
Trade Diversion ◽  
Trade Creation ◽  
Commodity Trade ◽  
Trade Patterns ◽  
Trade Data ◽  
Trade Area ◽  
The Impact

In this article the changes in trade patterns introduced by the ASEAN Free Trade Area (AFTA) are examined. Variation in growth trends and the shift-and-share methodology are used to identify the impact of trade liberalization under AFTA on intra- and extra-regional commodity trade. Data at the commodity level are used and the results indicate that AFTA had trade creation effects, with little evidence of trade diversion.

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