Analysis ICT Effect on Indonesian Exports With Emerging Market Countries

Rinanda Dwirintha Putri,Banatul Hayati

doi:10.47312/aefr.v6i2.336

Abstract

The development of information and communication technology (ICT) has recently affected international trade besides macroeconomic variables. This study aims to analyze the influence of ICTs (internet users, mobile cellular subscriptions, and fixed telephone subscriptions) and macroeconomic variables (population, economic distance, real GDP per capita, and real exchange rate) on Indonesian export performance with 6 countries emerging markets. This study uses secondary data sourced from UN Comtrade, International Telecommunication Union (ITU), World Bank, Distancefrom.net, and Federal Reserve Economic Data. Then, this study uses a static panel data analysis with the Ordinary Least Suares (OLS) method.The results showed that internet users had a positive and significant effect on export performance, and fixed telephone subscriptions had a negative and insignificant effect. Other results showed that the population had a positive and significant effect on export performance, the distance of the economy had a negative and significant effect on export performance, real per capita GDP had a negative and insignificant effect on export performance, and the real exchange rate had a negative and significant effect on export performance.Keywords: emerging markets, export performance, ICT, macroeconomic variables, OLS methods.

Highlights

International trade has an important role in stimulating a country's economic growth
The direct effect is evidenced by the hypothesis of the Export-Led Growth (ELG) which states that export expansion can increase the Gross Domestic Product (GDP) (Dreger & Herzer, 2012)
The volume of Indonesia's exports with partner countries is used as the dependent variable, while the independent variables consist of information and communication technology, economic distance, population, real GDP per capita, and real exchange rate

Summary

Introduction

International trade has an important role in stimulating a country's economic growth. This implies that the population of trading partners leads to the expansion of the domestic market Such conditions can create greater independence and there is no urgency to conduct bilateral trade Other variables show that the real GDP per capita of an importer has a positive and significant correlation, and the geospatial distance between Swaziland and trading partner countries has a negative and significant correlation to exports. The policy implication of this research is that Indonesia is expected to be able to develop strategic trade partnerships with big economic countries, such as Singapore and Malaysia It can increase the volume of exports, especially ICT-based products. D. It is assumed that there is a positive relationship of real GDP per capita of partner countries to Indonesia's bilateral trade export performance in 6 Emerging Market Countries in 2000-2018;. It is assumed that there is a negative relationship from the real exchange rate to the performance of Indonesia's bilateral trade exports in 6 Emerging Market Countries in 2000-2018

RESEARCH METHODOLOGY

AND DISCUSSION

Findings

Conclution