THE ROLE OF INFORMATION AND COMMUNICATION TECHNOLOGY ON SERVICE TRADE: CASE STUDY OF INDONESIA EXPORT TO ASEAN COUNTRIES (PERAN TEKNOLOGI INFORMASI DAN KOMUNIKASI DALAM PERDAGANGAN SEKTOR JASA: STUDI KASUS EKSPOR INDONESIA KE ASEAN)
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Date
2019Author
WARDANI, DYAH TITIS KUSUMA
NAHAR, FAIZA HUSNAYENI
HAIRUNNAS, HAIRUNNAS
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This study aims to analyze the impact of Information and Communication Technology (ICT) on bilateral trade between Indonesia and its ASEAN trading partners. The sample is bilateral export on technology intensive products between Indonesia and 10 ASEAN countries such as Malaysia, Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Myanmar, Laos and Cambodia. The total service trade is based on UN-Comtrade data, it consists of commodities are coded in Standard International Trade Classification (SITC). This study uses the gravity model framework of data panel from 2008 to 2017 with random effect model is analyzed using Generalized Least Square. Based on the regression analysis, results show that ICT Development Index (IDI) which represents technology development has a positive and significant impact on Indonesia’s service export to ASEAN countries. Other variables such as GDP, distance and common language also have significant effect on Indonesia’s service export. GDP reporter and GDP partners have positive and significant effect on Indonesia’s service export. Furthermore, distance has a negative and significant effect on Indonesia’s service export. These results are in line with Gravity model theory. In addition, these results are expected to be strong enough for the specifications of alternative models and estimation methods. Based on these results, some expected trade policy implications can be formulated.