Wahyu Ariyani Rosanty, - and Rossanto Dwi Handoyo, - (2020) The Effect of Extensive Margin towards Intra-Industry Trade between Asean-5 and Japan. International Journal of Innovation, Creativity and Change, 11 (9). pp. 566-581. ISSN pISSN: 2201-1315, eISSN: 2201-1323

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Abstract

This study discusses the extensive effect of margin between ASEAN-5 and Japan during 2000 to 2013. This study used Grubel-Llyod index calculation (IG index) to measure IIT, and calculation of formula by Hummels-Klenow to gauge the extensive margin. The method used in this research is panel data. The cross section of this study is the ASEAN-5 (Indonesia, Malaysia, Philippines, Singapore, and Thailand) and the time series are 2000 to 2013. This study provides three hypotheses: (1) GDP positively affects IIT, (2) difference in GDP per capita has a negative effect on IIT, and (3) extensive margin positively affects IIT. The results of this study are as follows: (1) The increase of GDP can elevate IIT, (2) GDP per capita difference does not affect IIT, and (3) extensive increase of margin can decrease IIT.

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