The Impact of Trade Openness on Sustainable Development: Study Case on G20 Group Countries

The issues concerning environmental damage, poverty, and unequal income distribution have taken center stage in contemporary policies aimed at sustainable development. Amidst various policy measures, trade policies continue to hold a prominent position due to their direct and indirect connections with sustainable development. It is widely believed that trade openness can incentivize both production and consumption. However, the rapid economic integration resulting from trade openness can also have adverse effects on society, employment, and the environment. Therefore, the primary objective of this study is to examine the impact of trade openness and other relevant factors on sustainable development in the G20 countries. This research adopts a quantitative approach, utilizing secondary data. Data analysis is conducted using a Heterogeneous Dynamic Panel econometric method, covering the period from 1990 to 2019. The findings of this study reveal that in the short term, sustainable development in the G20 countries is positively and significantly influenced by capital formation and environmental quality. Conversely, in the long run, sustainable development is positively and significantly affected by trade openness. Consequently, the recommendation stemming from this research for G20 countries is to further develop trade policies that prioritize and support sustainable development goals

The Potency of Indonesia-Vietnam Pepper Commodity Trade as One of the Non-Traditional Markets: IPB University

The trend of slowing export demand from Indonesia's main export destination countries currently requires Indonesia to diversify its exports to other countries. Vietnam is a country that has the potential as a destination for export diversification. The most potential product to be utilized in this export diversification is pepper. This study aims to analyze the potential and competitiveness of pepper exports in the Vietnamese market; as well as analyze tariff and non-tariff barriers to pepper exports to the Vietnamese market. The data used in this study are time series data for 2010-2019 sourced from the United Nations of Commodity Trade Database (UN-Comtrade) and the World Integrated Trade Solution (WITS). The analysis will be carried out through the analysis of ISP, IIT, RCA, EPD, as well as FI and CR. As for the results of this study, trade integration between Indonesia and Vietnam is still very weak (IIT), the competitiveness of Indonesia's pepper commodity is still low when compared to other countries in the Vietnam market (EPD), and Indonesia's pepper exports to Vietnam are affected by Non- Tariff Measure/NTM (FI and CR). Although, the Indonesian pepper commodity in the Vietnamese market is the most superior commodity (ISP), has great potential (RCA), and has a fairly high competitiveness (X-Model). Therefore, the recommended policy of the government is to increase world trade cooperation; internal improvements through the establishment of pepper farmer institutions, product diversification, and improving pepper quality; as well as pay attention to the supervision of aspects of Quality Control of pepper.Kecenderungan perlambatan permintaan ekspor dari negara tujuan ekspor utama Indonesia saat ini menuntut Indonesia untuk diversifikasi ekspor ke negara lain. Vietnam merupakan negara yang berpotensi sebagai negara tujuan diversifikasi ekspor. Produk yang paling berpotensi untuk dimanfaatkan dalam diversifikasi ekspor ini ialah lada. Penelitian ini bertujuan untuk menganalisis potensi dan daya saing ekspor komoditas lada di pasar Vietnam; dan menganalisis hambatan tarif serta non-tarif ekspor lada ke pasar Vietnam. Data yang digunakan dalam penelitian ini adalah data time series tahun 2010-2019 yang bersumber dari United Nations of Commodity Trade Database (UN-Comtrade) dan World Integrated Trade Solution (WITS). Metode analisis data yang digunakan adalah ISP, IIT, RCA, EPD, X-Model, serta FI dan CR. Hasil penelitian menunjukkan bahwa integrasi perdagangan antara Indonesia dan Vietnam masih sangat lemah (IIT), daya saing komoditi lada Indonesia masih rendah jika dibandingkan dengan negara lain di pasar Vietnam (EPD), dan ekspor lada Indonesia ke Vietnam terdampak Non-Tariff Measure/NTM (FI dan CR). Meskipun, komoditas lada Indonesia di pasar Vietnam merupakan komoditas yang paling unggul (ISP), sangat potensial (RCA), dan memiliki daya saing yang cukup tinggi (X-Model). Maka dari itu, upaya yang direkomendasikan pada pemerintah adalah peningkatan kerja sama perdagangan dunia; pembenahan internal melalui pembentukan kelembagaan petani lada, melakukan diversifikasi produk, serta meningkatkan kualitas lada; dan memperhatikan pengawasan terhadap aspek Quality Control lada