Intra Industry Trade of Agricultural Sector Commodity Between Indonesia and Malaysia, Philippines and Thailand

Abstract

The Association of Southeast Asian Nations (ASEAN) consists of ten member countries, which are well known for their agricultural sector. Four of the ten ASEAN member countries, namely Indonesia, Malaysia, the Philippines and Thailand have the potential strategic agricultural sector in sustaining the country's national income. Since 2000, the Indonesian agricultural products to Malaysia, the Philippines and Thailand have undergone a decrease in export value gains from year to year significantly. From the analysis tools used i.e. Grubel-Lloyd Index, Constant Market Share (CMS) and a Data panel; it is found a way to increase the export of agricultural products from Indonesia to Malaysia, the Philippines and Thailand, which is expected to increase the country's national income.

Keywords: intra industry trade, agricultural sector, Indonesia, Malaysia, the Philippines and Thailand.