Global Trading of Electronic Component in Indonesia Manufacturing Industry

Abstract

This paper deals with firm level data of Indonesian electrical and electronics industries in determining firm’s production, especially among export intensity and component trade integration. In the full sample, the result demonstrates that component trade integration is a significant determinant on productivity while export intensity is not. In ordinary trader sub-sample, export intensity is a significant determinant of firm’s production, whereas in global trader sub-sample export intensity is not. The policy implications of these results might not support totally for policies promoting export in Indonesian electrical and electronics industries. Export policies within the context of global trade and production value chains should be conducted with caution.