How do Export Structure and Competitiveness EvolveSince Trade Liberalization? An Overview and Assessmentof Indonesian Manufacturing Export Performance
The paper aims to elucidate the evolution of competitiveness and quantifies the contribution of the geographical and commodity composition on Indonesian manufacturing exports classified by factor intensity for period of 1987 to 2008. Using constant market share (CMS) analysis and Revealed Comparative Advantage (RCA) indicators, we reveal that while mostly enjoying benefits from world export growth, Indonesia exports performance were deteriorated by the negative contribution of commodity composition and market distribution, and the role of competitiveness in manufacturing export performance, which was improved significantly right after trade liberalization policy unleashed in 1986 has been diminishing in recent years. In addition, most of Indonesian manufacturing exports were still concentrated in natural resource- and unskilled labor-intensive manufacturing commodities.