Work

The Role of ASEAN+5 Trade Agreement in Boosting Agricultural Exports: Insights and Implications for the RCEP Agreement

Year: 2024

Type: article

Abstract: The ASEAN Regional Comprehensive Economic Partnership (RCEP) agreement is the world’s largest free trade agreement, which aims to deepen economic integration in East Asia, with ASEAN as a hub. This study examines the impact of the ASEAN regional trade agreement with five major partner countries, which was then consolidated into a single free trade agreement, the Regional Comprehensive Economic Partnership, on Indonesian agricultural exports, including the three major commodities of palm oil, rubber, and coconut. The Poisson Pseudo-Maximum Likelihood (PPML) approach was employed to examine the impact of Indonesia’s participation in the ASEAN+5 FTAs on its exports to 35 major partner countries over the period from 2000 to 2020. The empirical findings suggest that Indonesia’s involvement in the ASEAN+5 agreement, which serves as a proxy for the Regional Comprehensive Economic Partnership (RCEP), has had a positive effect on its rubber exports, but a negative and significant impact on the exports of aggregate agriculture, palm oil, and coconuts.

Source: Research on World Agricultural Economy

DOI: 10.36956/rwae.v6i1.1371

Authors: Heri Akhmadi, Ji Yong Lee

Institutions: Kangwon National University, Muhammadiyah University of Yogyakarta

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Zero hunger, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $400