Abstract
The growth in the volume and export value of fishery subsector shows the importance role of its sector to Indonesian economy. The export performance is influenced by many aspects, including trade facilitation. The problem faced by Indonesia is the low quality of trade facilitation resulting in relatively high trade costs, and this will affect the export performance. This research aims to analyze the effect of trade facilitation as well as other related variables on the Indonesia export in the fishery subsector, shrimp commodity exports, and export of tuna, mackerel tuna, as well as skipjack tuna. This study used panel data with ten years time series from 2007 to 2016, and the cross section data included ten major export destination countries. The data were analyzed using the gravity model with fixed effect estimation method. The study results showed that trade facilitation and other related variables had an effect on Indonesian fishery, shrimp, and tuna, mackerel tuna, as well as skipjack tuna exports. Based on the research results, Indonesian fishery exports can be improved by, firstly improving capacity and quality port infrastructure. Secondly, improving capacity and quality of electricity supply. Thirdly, the institutional quality is primarily concerned with ethics and corruption, and fourthly, the efficiency of trade across border needs to be improved in the hope of increasing the Indonesian export in the fishery subsector. Keywords: export, fishery, gravity model, trade facilitation
Highlights
The development of the value and volume of fishery product exports shows the important role of the fisheries subsector in the Indonesian economy (Table 1)
Shrimp dominated by 39%; while tuna, mackerel tuna, as well as skipjack tuna commodities contributed 16% of the Indonesian fishery products for export
Export performance is influenced by trade facilitation conditions which consist of infrastructure and institutional conditions
Summary
The development of the value and volume of fishery product exports shows the important role of the fisheries subsector in the Indonesian economy (Table 1). The value of fishery product exports for the period of 2007 to 2016 showed a growth of 5.30%. The export value of fishery products that experienced this growth was inversely proportional to the total value of Indonesia's exports during the same period which showed a downward trend. According to KKP (2015), shrimp and tuna, mackerel tuna, as well as skipjack tuna were the main commodities of fisheries whose export volume and value showed an increasing trend from 2010 to 2014. Shrimp dominated by 39%; while tuna, mackerel tuna, as well as skipjack tuna commodities contributed 16% of the Indonesian fishery products for export. Export performance is influenced by trade facilitation conditions which consist of infrastructure and institutional conditions. Indonesia's overall infrastructure quality ranked only 60th and institutional condition ranked 56th out of 138 countries studied (WEF, 2017)
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