Miguel Angel Esquivias Padilla, - and Dyah Wulan Sari, Ph.D. and Rossanto Dwi Handoyo, - (2017) The strategic role of Indonesia in Global Value Chains (GVC). In: Increasing Management Relevance and Competitiveness: Proceedings of the 2nd Global Conference on Business, Management and Entrepreneurship (GC-BME 2017), 9 August 2017, Universitas Airlangga, Surabaya.

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Abstract

This study looks at the participation of Indonesia in Global Value Chains (GVC) and the role it plays in fragmented structures. Through an international input-output database and by breaking up Gross Exports (GE) into different components of Value Added (VA), it traces the interaction of Indonesia within the global value chain to measure vertical specialization for Indonesia. The results show that Indonesia has significantly gained in integration with Asian value chains, both East Asia and ASEAN. Even though ASEAN as a single production region has gained little over time, Indonesia has gained presence within it. Indonesia lost share in VA trade with NAFTA and Europe and focused on Asia instead. The role of Indonesia across the GVC has experienced a structural change, moving from 50% exports of value added though final goods in 1997 to a supplier of intermediaries (59%) in 2012. Indonesia differs from ASEAN countries regarding foreign value added content in its exports as most of its value added is local (88%), is less globally integrated (12% of vertical trade vs. 35% in ASEAN), is more intra-Asian focused, and has less high-tech exports.

Item Type:	Conference or Workshop Item (Paper)
Uncontrolled Keywords:	vertical specialization, AFTA, production networks, value added trade, global input-output
Subjects:	H Social Sciences H Social Sciences > HG Finance
Divisions:	04. Fakultas Ekonomi dan Bisnis > Doktoral Ilmu Ekonomi
Creators:	Creators NIM Miguel Angel Esquivias Padilla, - UNSPECIFIED Dyah Wulan Sari, Ph.D. UNSPECIFIED Rossanto Dwi Handoyo, - NIDN0024087602
Depositing User:	Tn Sugeng Riyanto
Date Deposited:	13 Mar 2022 15:29
Last Modified:	19 Oct 2022 03:32
URI:	http://repository.unair.ac.id/id/eprint/114062
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