The Competitiveness Of Indonesia's Agricultural Export To China

China proved to have become the main driver of global economic growth,while Indonesia as a developing country is expected within the next years ahead to strengthen trade cooperation with China.Agriculture has been for centuries Indonesia's primary source of employment,therefore Indonesia's overall agricultural policy plays a vital role in the country's economic development.However,Indonesia is not the only country in South East Asia that put agriculture as their main important sector.Indonesia has biggest competitor as an agriculture export countries in South East Asia such as Malaysia and Thailand,and these three countries has a lot of similarity.In terms of Malaysia is Indonesia's closest neighbour country that some parts or Malaysia shares the same land with Indonesia,and Thailand is one of South East Asian country that made big contributions.Therefore the importance for Indonesia's agriculture product to be able to compete in China's market is inevitable,in order to know its competitiveness,it is needed to compare the competitiveness between these countries of exporting agriculture export to China and in the end we are able to give suggestion to improving Indonesia's competitiveness.This thesis also reviews the international trade theories and the literature on agriculture export in those three ASEAN countries.This thesis is based on a combination of theoretical and empirical analysis.This is essentially an empirical analysis based quantitative model,supplemented by qualitative analysis.The main conclusions are as follows:1)Indonesia,Malaysia and Thailand are highly competitive,but Thailand has the largest RCA index,followed by Indonesia and Malaysia is the smallest;2)TCI index showed that these three countries has a strong competitive on these products SITC-048,022,057,071,231,422,056,072,091,121,222,and 223;3)FK index showed that Indonesian and Malaysian agricultural exports to China are more similar to those of Indonesia and Thailand;4)For the past four years,TCD index showed that Thailand agriculture export to China is more rapid and intense than to Malaysia.While the degree of combination in agricultural trade between China and Indonesia shown a gradual decline.5)CMS model showed that structural effects is the main factors that influencing Indonesianagricultural export to China.Main driven of structural effects is the increasing of China's agriculture imports,so Indonesia needs to be able to accurately monitor the demand for Chinese agricultural products.Compared with Indonesia and Malaysia,Thailand's main drives for its agriculture export to China is competitive effect.And then this thesis also providing some relevant suggestions for Indonesia to increase its competitiveness of agricultural products export to China.