Indonesia’s Manufactured Exports: A Constant Market Shares Analysis

Penulis: Wawan Juswanto and Puji Mulyanti

Manufactured exports are believed to be one of the engines of Indonesian economic growth. It is true that Indonesia`s manufactured exports grew rapidly and its share in GDP increased year by year. Even though manufactured exports grew fast but it grew inconstantly, fluctuating year by year. Although there have been many efforts to encourage this sector, many problems still exist. To minimize the problems, government should understand the causes of the problems. Identifying these causes, can help set government on the right track. Using constant market share analysis, it is found that product composition seems to be a main problem of Indonesia’s manufactured exports. Indonesia’s manufactured exports concentrated in products with relatively low world demand. This is shown by the fact that products under SITC 6 and 8 which constitute more than fifty percent of Indonesia`s manufactured exports have lower world export growth than that of other products.

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