The Influence of Trade Liberalization on International Trade Balance of Agricultural Commodities

Abstract

Introduction. In the era of globalization, the correlation between trade liberalization and international commodities is becoming a popular issue. It happens because of the trade limitation, which creates inefficiency in both production and consumption impacted on the lowering of overall prosperity. Purpose. This study aimed to observe the influence of trade liberalization on the international trade balance of agricultural commodities in South Sulawesi, Indonesia. Afterward, this study applied a qualitative approach with double linear regression. The data used in this study was secondary data from 2003 until 2009. Results. The result of this study showed that trade liberalization did not impact the international trade balance on agricultural commodities in South Sulawesi. It was caused by the export and import performance were getting 150% surplus from market share. Also the highest commodity on cacao had the competitive power. Conclusions. South Sulawesi agricultural commodities had high competitiveness and net-export oriented. Hence, the trade liberalization did not influence the international trade balance of agricultural commodities in 2011- 2016.

Introduction. In the era of globalization, the correlation between trade liberalization and international commodities is becoming a popular issue. It happens because of the trade limitation, which creates inefficiency in both production and consumption impacted on the lowering of overall prosperity. Purpose. This study aimed to observe the influence of trade liberalization on the international trade balance of agricultural commodities in South Sulawesi, Indonesia. Afterward, this study applied a qualitative approach with double linear regression. The data used in this study was secondary data from 2003 until 2009. Results. The result of this study showed that trade liberalization did not impact the international trade balance on agricultural commodities in South Sulawesi. It was caused by the export and import performance were getting 150% surplus from market share. Also the highest commodity on cacao had the competitive power. Conclusions. South Sulawesi agricultural commodities had high competitiveness and net-export oriented. Hence, the trade liberalization did not influence the international trade balance of agricultural commodities in 2011- 2016.