DETERMINANT OF INTRA INDUSTRY TRADE OF AUTOMOBILE IN INDONESIA

Puspita, Delvia (2015) DETERMINANT OF INTRA INDUSTRY TRADE OF AUTOMOBILE IN INDONESIA. Diploma thesis, UPT. Perpustakaan Unand.

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Abstract

Empirical intra-industry trade has a history that began in the mid-1960s AS most empirical exercise, it has been wrought with cricitism and defenses that have molded the work that is done on intra-industry trade today. this paper aims to examinethe determinants of intra-industry (IIT) in the sales of automobile industry in indonesia during january 2005 until september 2014. This paper formulates some theoretical hypotheses, that may explain the fragmentation of the production in the automobile industry. these hypotheses are tested using logistic model data analysis. the results indicate that IIT of automobile is a positive function of the GDP between indonesia and its trading partners. Moreover, there is statistical evidence that Variable Foreign Direct Investment (FDI) negatively to IIT

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