Proceedings of the 23rd Asian Forum of Business Education(AFBE 2019)

Bilateral Trade and Monetary Regime: Analysis for ASEAN-5 Countries and their Main Trading Partners

Authors
Putu Mahardika Adi Saputra
Corresponding Author
Putu Mahardika Adi Saputra
Available Online 9 June 2020.
DOI
10.2991/aebmr.k.200606.021How to use a DOI?
Keywords
bilateral trade, monetary regime, inflation targeting, exchange rate targeting, gravity model
Abstract

This study analyzes the impact of the choice of monetary regimes, namely the inflation targeting (IT) and exchange rate targeting (ERT) on the behavior of bilateral trade in ASEAN-5 Countries and their main trading partners in Asia Pacific. By utilizing the augmented gravity panel model, the study also considers the effects of distance, national income, exchange rates, common language and dummy intra-ASEAN trade on trade activities. The results showed that countries which implement an inflation targeting regime tend to have greater trade values compared to countries that implement an exchange rate targeting regime. The negative effects on bilateral trade are seen to be contributed by the variable of distance, exchange rate, common language and intra-ASEAN trade. While the income variable has a positive and significant effect on the trade.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 23rd Asian Forum of Business Education(AFBE 2019)
Series
Advances in Economics, Business and Management Research
Publication Date
9 June 2020
ISBN
978-94-6252-977-9
ISSN
2352-5428
DOI
10.2991/aebmr.k.200606.021How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Putu Mahardika Adi Saputra
PY  - 2020
DA  - 2020/06/09
TI  - Bilateral Trade and Monetary Regime: Analysis for ASEAN-5 Countries and their Main Trading Partners
BT  - Proceedings of the 23rd Asian Forum of Business Education(AFBE 2019)
PB  - Atlantis Press
SP  - 135
EP  - 141
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200606.021
DO  - 10.2991/aebmr.k.200606.021
ID  - Saputra2020
ER  -