DAMPAK PELAKSANAAN ACFTA (ASEAN-CHINA FREE TRADE AGREEMENT) PADA FDI EKTRA-REGIONAL DI INDONESIA

Amalia Astatiani

doi:10.55681/jige.v4i2.829

Authors

Amalia Astatiani Fakultas Bisnis dan Ekonomi, Universitas Indonesia

DOI:

https://doi.org/10.55681/jige.v4i2.829

Keywords:

ACFTA, Economic Integration, FDI Inflow, Indonesia

Abstract

The era of globalization encourages countries to integrate with other countries to fulfil domestic needs at lower prices and encourages the export of domestic products. When the countries conclude the Economic integration, besides of effect of the increment in international trade, there is also the effect of increasing FDI inflows which are called investment creation, which is the increment of FDI from extra-regional countries. Since Indonesia ratified ACFTA and the tariff between Indonesia and China became 0 tariffs in 2010, it raises questions about whether Indonesia had the investment creation from economic integration with China and what factors have influenced FDI flows in Indonesia since the ACFTA. This study attempts to answer this question using descriptive analysis and an econometric approach. The econometric approach in this study uses the gravity method by including panel data from 91 countries over a period of 13 years. The econometric approach gives the result that extra-regional countries have a significant negative effect on FDI inflows in Indonesia which makes Indonesia still needs to implement policies to attract FDI inflows from extra-regional.

Downloads

Download data is not yet available.

References

Alleyne, A., Zhang, Z., & Mu, Y. (2020). Sustaining international trade with China: Does ACFTA improve ASEAN export efficiency? Sustainability (Switzerland), 12(15). https://doi.org/10.3390/su12156159

ASEAN-CHINA FREE TRADE AREA official website (2022) http://www.asean-cn.org/ (Diakses 1 Oktober 2022)

Baltagi, B. H., Egger, P., & Pfaffermayr, M. (2007). Estimating models of complex FDI: Are there third-country effects? Journal of Econometrics, 140(1), 260–281. https://doi.org/10.1016/j.jeconom.2006.09.009

Baltagi, B. H., Egger, P., & Pfaffermayr, M. (2007). Estimating models of complex FDI: Are there third-country effects? Journal of Econometrics, 140(1), 260–281. http://dx.doi.org/10.1016/j.jeconom.2006.09.009

Bezemer, D. (2004) Regional integration and foreign direct investment in developing countries. http://www.odi.org.uk/iedg/Projects/ec_prep1.pdf

BKPM (2022) Data Realisasi Realisasi Investasi. https://nswi.bkpm.go.id/data_statistik (Diakses Oktober 2022)

Blomstro ̈m, M., & Kokko, A. (1997). Regional integration and foreign direct investment. NBER Working Paper.

Blomstro ̈m, M., & Kokko, A. (2003). FDI and human capital: A research agenda. Paper for OECD technical meeting on FDI, human capital and education in developing countries. CEPR Discussion Paper No. 3762. ISSN 0265-8003

BPS (2022) Nilai Ekspor Menurut Negara Tujuan Utama. https://www.bps.go.id/statictable/2014/09/08/1010/nilai-ekspor-menurut-negara-tujuan-utama-nilai-fob-juta-us-2000-2021.html (Diakses September 2022)

Cheng, I., Wall, H. J., (2004) Controlling for Heterogeneity in Gravity Models of Trade and Integration. Federal Reserve Bank of St. Louis

Cuong, H., Trang, T., & Nga, D. (2015). Do Free Trade Agreements (FTAs) Really Increase Vietnam’s Foreign Trade and Inward Foreign Direct Investment (FDI)? British Journal of Economics, Management & Trade, 7(2), 110–127. https://doi.org/10.9734/bjemt/2015/16253

De Negocios, E., Yeyati, E. L., Daude, C., & Stein, E. (2002). The FTAA and the Location of FDI.

Demirhan, E., Masca, M., 2008. Determinants of foreign direct investment flows to developing countries: a cross-sectional analysis. Prague Econ. Pap. 4, 356e369.

Dunning, J. H. (1988). Explaining international production. London: Harper Collins.

Dunning, J. H. (1997). The European internal market program and inbound foreign direct investment. Journal of Common Market Studies, 35(1–2), 1–30. 189–223.

Haddad & Harrison (1993) Are there positive spillovers from direct foreign investment? Evidence from panel data for Morocco. Journnal of Development Economics 42 (1993). North-Holland.

Hoang, H. H., & Goujon, M. (2018). Determinants of Intra-Region and Extra-Region Foreign Direct Investment Inflow in ASEAN: A Spatial Econometric Analysis. Applied Spatial Analysis and Policy.

Imansyah, & Nasrudin. (2016). The impact of economic integration and macroeconomic on Indonesia Foreign Direct Investment (FDI): A panel gravity model. Journal of Distribution Science, 14(4), 33–38. https://doi.org/10.15722/jds.14.4.201604.33

Ismail, N. W. (2009). The determinant of foreign direct investment in ASEAN: A semi-gravity approach. Transition Studies Review, 16(3), 710–722.

Itō, T., & Rose, A. (2005). International trade in East Asia. University of Chicago Press.

Krugman, Paul R & Maurice Obstfel. 1999. Ekonomi Internasional: Teori dan Kebijakan. PT Raja Grafindo Persada: Jakarta

Lesmana, Adi. 2021. Pengaruh Kebijakan Pajak Perusahaan Terhadap Investasi Langsung Luar Negeri: Bukti Empiris Dari Negara-Negara Asia

Li, Q., Scollay, R., & Maani, S. (2016). Effects on China and ASEAN of the ASEAN-China FTA: The FDI perspective. Journal of Asian Economics, 44, 1–19. https://doi.org/10.1016/j.asieco.2016.05.001

Magasházi, A. (2015). The integraton by trade and FDI of emerging economies: The ASEAN example. Society and Economy, 37(2), 207–223.

Masron, T. A., & Nor, E. (2013). FDI in ASEAN-8: Does institutional quality matter? Applied Economics Letters, 20(2), 186–189.

Moon, J. (2009). A study of the effects of free trade agreements on foreign direct investment (Doctor of Philosophy) University of California, LA, UMI (3388134).

Park, D. (2007). The prospects of the ASEAN-China Free Trade Area (ACFTA): A qualitative overview. In Journal of the Asia Pacific Economy (Vol. 12, Issue 4, pp. 485–503). Routledge. https://doi.org/10.1080/13547860701594103

PUGEL, T. A. (1981): «The Determinants of Foreign Direct Investment: An Analysis of U.S.» Managerial Decision Economics, vol. 2, pp. 220-228.

Quazi, R. (2007). Economic freedom and foreign direct investment in East Asia. Journal of the Asia Pacific Economy, 12(3), 329–344.

Salvator, Dominick. 1997. Ekonomi Internasional. Edisi Kelima. Erlangga. Jakarta

Santander Trade Portal (2022). CHINA: FOREIGN INVESTMENT. https://santandertrade.com/en/portal/establish-overseas/china/foreign-investment (Diakses 1 Oktober 2022 18:00)

Sekretariat ASEAN (2022) https://asean.org/ (Diakses Oktober 2022)

Sermcheep, S. (2017) Determinants of Chinese Outward FDI in ASEAN.

Somjai, M. K., (2016) ASEAN-CHINA ECONOMIC COOPERATION UNDER

THE ASEAN-CHINA FREE TRADE AGREEMENT (ACFTA): THE CASE STUDY OF THAILAND

Sritika (2012) Analisi pengaruh ASEAN-China terhadap FDI di ASEAN.

Rathnayaka Mudiyanselage MM, Epuran G, Tescașiu B (2021) Causal links between trade openness and foreign direct investment in Romania. J Risk Financ Manag 14(3):90. https://doi.org/10.3390/jrfm1 4030090

Thangavelu, S. M., & Findlay, C. (2011). The Impact of Free Trade Agreements on Foreign Direct Investment in the Asia-Pacific Region.

Tinbergen J. (1962), Shaping the World Economy: Suggestions for and International Economic Policy, New York: the Twentieth Century Fund.

Trademap (2022) Data Ekspor – Impor Indonesia, China dan ASEAN. https://www.trademap.org/Index.aspx (Diakses Oktober 2022)

UNCTAD (2022) World Investment Report 2018-2020. https://unctad.org/ (Diakses Oktober 2022)

Urata, S. (2018). Free Trade Agreements and Patterns of Trade in East Asia from the 1990s to 2010s. East Asian Community Review, 1(1–2), 61–73.

Verico, K. (2017). THE FUTURE OF THE ASEAN ECONOMIC. London: Palgrave Macmillan.

Verico, K., & Natanael, Y. (2018). Let’s talk about the Free Trade Agreement (FTA): The five ASEAN members highlighting Indonesia (No. 023). Jakarta.

Verico, K., & Oktavia, I. (2020). THE AWAKENING OF INVESTMENT CREATION: A CASE STUDY FROM SOUTH-EAST ASIA. Buletin Ilmiah Litbang Perdagangan, 2020

Wildani, F., Yuliati, L., Luthfi, A., Kunci, K., Domistik, P., Perdagangan, B. ;, & Impor, E. (2017). ANALISIS INTEGRASI EKONOMI INDONESIA-CHINA TERHADAP PEREKONOMIAN INDONESIA (SEBELUM DAN SESUDAH ACFTA). JOURNAL of RESEARCH in ECONOMICS and MANAGEMENT, 17(1). https://doi.org/10.17970/jrem.17.1701012.ID

World Bank Open Data (2022) https://data.worldbank.org/ (Diakses Oktober 2022)

WTO (2022). Membership of regional trade agreements and preferential trade agreements https://www.wto.org/english/thewto_e/countries_e/indonesia_e.htm#rtaPtaHead. Diakses 20 September 2022 20:00

Xaypanya, Rangkakulnuwat & Paweenawat (2015). The determinants of foreign direct investment in ASEAN: The first differencing panel data analysis. International Journal of Social Economics, 42(3), 239–250

Yang, S., & Martinez-Zarzoso, I. (2014). A panel data analysis of trade creation and trade diversion effects: The case of ASEAN–China free trade area. China Economic Review, 29(0), 138–151. http://dx.doi.org/10.1016/j.chieco.2014.04.