China And Indonesia Trade In Agricultural Products Is A Comparative Study

Based on the analysis of the Revealed Comparative Advantage Index, Export Similarity Index, Trade Complementarity Index for China and Indonesia, this paper measures the trade relations of agricultural products and locates products that possess either competitive or compatible nature between the two countries, with a focus on exploring whether there exists cooperative foundations for them. The study shows that export competition of the overall agricultural products between China and Indonesia is not remarkable, and complementary trade is the main mode in bilateral trade between Chinese and Indonesia, for example, natural rubber, cocoa, but some agricultural products also have certain competitiveness, for example, fresh, chilled or frozen fish, preserved fruit and fruit preparations.Constant Market Share Model model (CMS Model for short) is used to proving the incidence of different effects for the growth of agricultural products trade between China and Indonesia. The study results show that Structural effect is the dominant factor that influence the growth of agricultural product between China and Indonesia.The research shows that the main reason of agricultural products trade growth between China and Indonesia is the growth of agricultural products import scale of the two countries. The overall export competitiveness of agricultural products between the two countries is not strong, The main trade form between China and Indonesia is complementary trade. The two countries have potential trade cooperation.