Indonesia's Role In The Economy Of The Organization Of Islamic Cooperation Countries: A Gravity Trade Model Analysis

tajul ula

Abstract


Indonesia is one of the solidarity members of Muslim-majority countries that are members of the Organization of Islamic Cooperation (OIC). Various reasons for the formation of this organization one of them is promotional efforts among others, close cooperation to help in economic terms. This article aims to analyze the factors that affect export performance and Indonesia's role as a country with the largest Muslim population in the world against the 5 largest economies of OIC member countries, namely Saudi Arabia, Turkey, Iran, Nigeria and the United Arab Emirates (UAE). The observation period used was from 1989 to 2021. The results of the analysis with a random effect panel data model approach revealed that the variables GDP, Distance, Economic Equation Index and Exchange Rate of 5 OIC member countries had a positive effect on Indonesia's exports to OIC member countries. Furthermore, Indonesia's exports to OIC member countries have a positive effect on the GDP of 5 OIC member countries. The implications of this study show the role of Indonesia's trade in the economy of OIC partner countries which also has an impact on increasing the country's foreign exchange while increasing total output which ultimately has an impact on increasing national economic capacity. Therefore, revitalizing the agreement and maintaining conducive relations and support in the form of stimulation between OIC countries are the key to the economic strength of OIC member countries.

Keywords


Gravity Model, Export, Import, Panel Data, Organization of Islamic Cooperation (OIC)

References


Aditya, I. M. (2021). Lampaui Arab dan Turki, Ekonomi Indonesia Jadi yang Terbesar di Antara Negara OKI. Good News From Indonesia. https://www.goodnewsfromindonesia.id/2021/03/13/lampaui-arab-dan-turki-ekonomi-ri-jadi-yang-terbesar-diantara-negara-oki

Ambarita, Y. M. R., & Sirait, T. (2020). Penerapan Model Gravitasi Data Panel: Kajian Perdagangan Internasional Indonesia Ke Negara Anggota Asean. Seminar Nasional Official Statistics, 2019(1), 726–737. https://doi.org/10.34123/semnasoffstat.v2019i1.85

Bary, P. (2010). Prospek Perdagangan Indonesia, Cina dan India melalui Analisa Gravity Model. Buletin Ilmiah Litbang Perdagangan, 4(2).

Chaney, T. (2018). The Gravity Equation in International Trade: An Explanation. Journal of Political Economy.

Gibbons, Z. (2018). OKI sasaran diplomasi ekonomi bidang kesehatan Indonesia. Antara: Kantor Berita Indonesia. https://www.antaranews.com/berita/689994/oki-sasaran-diplomasi-ekonomi-bidang-kesehatan-indonesia

goodstats.id. (2022). Ekonomi Terbesar Negara OKI. Good Stats. https://goodstats.id/infographic/ekonomi-terbesar-negara-oki-6j1Xz

Gujarati, D. N. (2006). Dasar-dasar ekonometrika. Erlangga.

Gujarati, D. N., & Porter, D. C. (2008). BasicEconometricsFifthEdition. Mc Graw Hill.

Handoyo, R. D., Alfani, S. P., Ibrahim, K. H., Sarmidi, T., & Haryanto, T. (2023). Exchange rate volatility and manufacturing commodity exports in ASEAN-5: A symmetric and asymmetric approach. Heliyon, 9(2), e13067. https://doi.org/10.1016/j.heliyon.2023.e13067

Helpman, E., & Krugman, P. (1985). Market Structure and Foreign Trade. MIT Press: Cambridge, MA.

Hidayat, A. S. (2016a). Dinamika Kerjasama Ekonomi Indonesia Dengan Anggota Organisasi Konferensi Islam (Oki): Potensi Dan Pengaruhnya Terhadap Perekonomian Indonesia. Buletin Ilmiah Litbang Perdagangan, 10(1), 21–44. https://doi.org/10.30908/bilp.v10i1.21

Hidayat, A. S. (2016b). Dinamika Kerjasama Ekonomi Indonesia Dengan Anggota Organisasi Konferensi Islam (Oki): Potensi Dan Pengaruhnya Terhadap Perekonomian Indonesia. Buletin Ilmiah Litbang Perdagangan, 10(1), 21–44. https://doi.org/10.30908/bilp.v10i1.21

Kalbasi, H. (2001). The gravity model and global trade flows. 5–7.

Karno, K. (2017). Gravity Modeling Approach for Indonesia’s Exports with ten Asian Countries. International Journal of Economics and Business Administration, V(Issue 3), 3–20. https://doi.org/10.35808/ijeba/131

Krugman, P. (1991). Increasing Returns and Economic Geography. Journal of Political Economy, 99(3), 483.

Linnemann, H. (1966). An Econometric Study of International Trade Flows. North-Holland.

Maulana, A. S., Bukifan, M., Mambur, Y. P. V., & Sipayung, B. P. (2023). Pengaruh Krisis terhadap Nilai Ekspor Kakao Indonesia di Pasar Internasional. AGRIMOR, 8(2), 61–67. https://doi.org/10.32938/ag.v8i2.1953

Mulyadi, M., & Saenong, Z. (2017). Pengaruh GDP, Ukuran Ekonomi, Nilai Tukar, Penduduk Dan Jarak Ekonomi Terhadap Ekspor Indonesia Ke Negara Asean+6: (Pendekatan Model Gravitasi). 2.

Oktaviani, Z. (2022). Negara OKI Defisit Perdagangan Produk Halal Hingga 63 Miliar Dolar AS Hanya 18 persen dari impor ini bersumber dari dalam OKI. Republika. https://ekonomi.republika.co.id/berita/rm7t88368/negara-oki-defisit-perdagangan-produk-halal-hingga-63-miliar-dolar-as

Olanike Kareem, F., & Kareem, I. O. (2014). Specification and Estimation of Gravity Models: A Review of the Issues in the Literature. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2459484

Poyhonen, P. (1963). A Tentative Model for the Volume of Trade between Countries. 90, 93–100.

Prihadyatama, A. (2022). Kajian Empiris Model Gravitasi Faktor Penentu Ekspor Indonesia ke Negara Anggota Organisasi Kerjasama Islam (OKI).

Sabaruddin, S. S. (2017). Determinant Analysis of Bilateral Trade Between Indonesia and Yemen During the Period 1990-2015: A Gravity Model Approach. Journal of Developing Economies, 1(2), 37. https://doi.org/10.20473/jde.v1i2.3296

Sarwoko, S., Raharti, R., Ridwan, R., & Agustina, D. (2020). Pendekatan Model Gravitasi Untuk Mengestimasi Permintaan Pariwisata Di Indonesia. Jurnal Perspektif Ekonomi Darussalam, 6(2), 163–189. https://doi.org/10.24815/jped.v6i2.17850

Sinaga, A. M., Masyhuri, Darwanto, D. H., & Widodo, S. (2019). Employing Gravity Model to Measure International Trade Potential. IOP Conference Series: Materials Science and Engineering, 546(5), 052072. https://doi.org/10.1088/1757-899X/546/5/052072

Singh, T. (2010). Does International Trade Cause Economic Growth? A Survey: International Trade And Economic Growth. The World Economy, 33(11), 1517–1564. https://doi.org/10.1111/j.1467-9701.2010.01243.x

Tamimah, T., Herianingrum, S., & Arifin, N. R. (2019). Determinan Pertumbuhan Ekonomi Negara OKI. Jurnal Iqtisaduna, 5(2), 153. https://doi.org/10.24252/iqtisaduna.v5i2.11117

Tinbergen, J. (1962). Shaping the World Economy: Suggestions for an International Economic Policy. Twentieth Century Fund.

Utomo, M. D. (2022). Model Gravitasi Dan Faktor Budaya Terhadap Ekspor Indonesia Dengan Mitra Dagang Utamanya. Universitas Kristen Satya Wacana.

Yeshineh, A. (2016). Determinants and Potentials of Foreign Trade in Ethiopia: A Gravity Model Analysis. Munich Personal RePEc Archive Paper, No. 74509.

Yudanto, B. (2009). Penerapan model gravitasi pada perdagangan bilateral Indonesia: Analisa panel data dengan 39 negara mitra dagang pada tahun 2002-2006. Gajah Mada


Refbacks

  • There are currently no refbacks.


Bookmark and Share


Copyright (c) 2024 Tajul Ula

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.