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

Abstract

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