Identifying Indonesia-Uruguay Bilateral Trade Opportunities:A Revealed Comparative Advantage Approach

A Sulthon Sjahril Sabaruddin, Riris Rotua Sitorus


This paper attempts to identify and analyze the Indonesia-Uruguay bilateral trade opportunities based on their respective export competitiveness. The analysis uses the Revealed Comparative Advantage Index for year 2012 obtained from World Integrated Trade Solution (WITS). The paper reveals that there are still opportunities for both countries to further strengthen bilateral trade relations.Based on the RCA Index analysis, the paper finds that in general both countrieshave exported their commodities based on their comparative advantage, but however both countries current exports still do not reflect their potentials as most of the top ten commodities with the strongest comparative advantage are still not yet able to penetrate the both sides market. This study suggests both countries should remove trade barriers starting by providing access for the top 10 commodities with the strongest comparative advantage to penetrate in both countries. This step could be a stepping stone towards further intensifying bilateral trade relations.


Comparative Advantage; Export Competitiveness; Bilateral Trade

Full Text:



Balassa, B., (1965), “Trade Liberalization and Revealed Comparative Advantage,” The Manchester School, 33, pp.


Chandran, S., (2010), “Trade Complementarity and Similarity between India and ASEAN Countries in the Context

of the RTA,” MPRA Paper No. 29279, p. 3-4, 7 August. Last Retrieved 4 July 2013: http://mpra.ub.unimuenchen.

de/29279/, (2013), “Diplomat RI Bebas Visa Masuk Uruguay,” 14 June. Available from:

Kemlu, (2011). “Buku Diplomasi Indonesia 2011,” Kemlu Online, p.138. Available from:

Mikic, M.,&Gilbert, J., (2009), Trade Statistics in Policymaking: A Handbook of Commonly Used Trade Indices

and Indicators – Revised Edition, United Nations ESCAP, Bangkok. Last Retrieved 5 September 2012: (2013), “Uruguay Busca Profundizar el Mercosur sin Dejar de Mirar a Otras Regiones,” Last retrieved 14 July.Available from:


Pikiran Rakyat Online (2013), “Babak Baru Hubungan Bilateral Indonesia – Uruguay,” 13 June. Available from:

Sodersten, B., & Reed, G., (1994), International Economics, Macmillan Press, London.

World Integrated Trade Solutions (2013), Trade Indicators. Last Retrieved 2 July 2013:


  • There are currently no refbacks.

International Conference On Law, Business and Governance (ICon-LBG)
Bandar Lampung University
ISSN: 2339-1650