Quality of Indonesia’s domestic institutions and export performance in the era of global value chains

Abstract The focus of this research is on analysing the effects institutional quality and trade agreements Indonesia bilateral in four commodity groups era global value chain (GVC). Employing a panel data gravity model Indonesian export commodities to Indonesia’s trading partners from 2000 2018 estimating Feasible Generalized Least Squares (FGLS) Poisson Pseudo Maximum Likelihood Method (PPML), results study find that plays different role explaining performance those commodities, despite fact institutions contribute positively. On two are prospective increase participation chain, exported intermediates consumer goods, we although both domestic partner significant export, but argue more. This also reveals through tariff reductions, regarding all group. However, even though tariffs significant, institutions, especially has greater effect Indonesia's exports.