Determinants of Indonesia’s Intra-Industry Trade of Cosmetic Commodity (HS Code 3304) with Trade Partners Of APEC-4 Countries

Abstract

Intra-Industrial Trade has increased in recent years followed by the trend of cosmetic commodities starting to dominate there is a diverse diversification of cosmetic commodities, countries that are members of one integration carry out intra-industry trade due to reduced barriers. This study aims to determine the level of integration of Intra-Industrial trade and trading partners in cosmetic commodities, especially those integrating in APEC, whether GDP per capita, exchange rate, and economic distance affect exports and imports between Indonesia and trading partners simultaneously or partially in terms of the level of integration through the IIT Index. Using panel data analysis secondary data from the 2015-2019 time series. Data obtained from databases including UN Comtrade, BI, BPS, World Bank and other databases with keywords Intra-Industry Trade (IIT), determinants, GDP per capita, exchange rates, economic distance, cosmetics. The results of research with the Fixed Effect Model model show that GDP Per Capita, distance and exchange rate have a positive and significant effect on IIT.