Economic Diplomacy: a Comparative Study on Trade Between Visegrad Four (V4) and Indonesia

Emy Sri RESKIYAH

Master's thesis

Economic Diplomacy: A Comparative Study of Visegrad Four (V4) and Indonesia and Vice Versa

Abstract:

This comparative study aims to describe and explain the trade relations (structure and value) between Indonesia and the Visegrad Four (V4). This study consists of three parts. First, it provides a theoretical framework of mercantilism, realism, liberalism, and economic diplomacy. Second, it consists of comparative analysis of the current trade agreement between Indonesia and the EU including V4, trade patterns of V4 and Indonesia which encompass trade volume, trade structure, and trade partner's composition. Followed by an explanation of the barriers to trade flows between Indonesia and the V4. Finally, the last part elucidates the role of economic diplomacy in trade flows between the V4 and Indonesia. The objective of this research is to discuss the trade relations between Indonesia and the V4 and to further investigate whether the economic diplomacy and a new trade agreement between the EU and Indonesia, namely comprehensive economic partnership agreement (CEPA), can increase the value of mutual turnover between Indonesia and the V4. This study demonstrates that the role of economic diplomacy in increasing the trade flows between Indonesia and the V4 can be done in two ways. Trade diplomacy through CEPA between Indonesia and the EU can influence the value of mutual turnover between Indonesia and the V4 by removing tariff and non-tariff barriers. Commercial diplomacy through trade promotion can affect trade flows between the two entities. Furthermore, several commodities which are seen as having the most potential for the mutual turnover between Indonesia and the V4 and having a strong competitiveness index value include textiles, coffee, coconut oil, rubber, and footwear.

Abstract:

This comparative study aims to describe and explain the trade relations (structure and value) between Indonesia and the Visegrad Four (V4). This study consists of three parts. First, it provides a theoretical framework of mercantilism, realism, liberalism, and economic diplomacy. Second, it consists of comparative analysis of the current trade agreement between Indonesia and the EU including V4, trade patterns of V4 and Indonesia which encompass trade volume, trade structure, and trade partner's composition. Followed by an explanation of the barriers to trade flows between Indonesia and the V4. Finally, the last part elucidates the role of economic diplomacy in trade flows between the V4 and Indonesia. The objective of this research is to discuss the trade relations between Indonesia and the V4 and to further investigate whether the economic diplomacy and a new trade agreement between the EU and Indonesia, namely comprehensive economic partnership agreement (CEPA), can increase the value of mutual turnover between Indonesia and the V4. This study demonstrates that the role of economic diplomacy in increasing the trade flows between Indonesia and the V4 can be done in two ways. Trade diplomacy through CEPA between Indonesia and the EU can influence the value of mutual turnover between Indonesia and the V4 by removing tariff and non-tariff barriers. Commercial diplomacy through trade promotion can affect trade flows between the two entities. Furthermore, several commodities which are seen as having the most potential for the mutual turnover between Indonesia and the V4 and having a strong competitiveness index value include textiles, coffee, coconut oil, rubber, and footwear.

Keywords

Economic Diplomacy, Trade Diplomacy, Commercial Diplomacy, Indonesia, Visegrad Four

Language used: English

Date on which the thesis was submitted / produced: 1. 6. 2020

Thesis defence

• Supervisor: Ing. Mgr. Richard Turcsányi, Ph.D.

Palacký University Olomouc

Faculty of Arts

Master programme / field:
Humanities / Euroculture