INTERNATIONAL TRADE IN VACCINES IN COUNTRIES'
ECONOMIC GROWTH
1. Introduction:
In a country's economy, economic growth is the most prominent context.
Economic growth is very important in a country's economy because it can be a measure
of the nation's economic achievement, and this economic growth is an indicator of
development progress because the driver of growth is international trade. As in
international trade which is growing large due to cooperation carried out by various
countries and the desire to introduce goods and services freely. This international trade
activity is an important thing for a country. With this, it will benefit from other countries
and make the country's economic growth because many investors enter the country. One
form of international trade is exports, this export activity has an important role in
economic growth, especially for developing countries. The productivity of trade
between countries in the macro perspective allows the national economy to be better to
enlarge foreign exchange reserves, provide employment and ultimately a country will
achieve a higher standard of living, and in the micro perspective this trade activity
between countries provides a competitive advantage for individual companies to
improve the financial position of the company, and raise technological standards. A
country that conducts import-export activities has comparative, competitive, and
independence advantages in managing natural resources, and progress in
industrialization and labor. The purpose of this study is to determine the role of
international trade to provide a boost to national economic development.
Basically, the state has three responsibilities, namely: respect, protect and fulfill
the right to health. The right to health is a positive right, the type of right that requires
state intervention to facilitate the fulfillment of the right to health, 20 this means, the
state has the responsibility to adopt appropriate legislative, budgetary, judicial,
promotional and other measures to fully realize the right to health.
"The measures to be taken by States Parties to the present Covenant to achieve the
full realization of this right shall include those necessary to:
(a) Provisions for the reduction of stillbirths and infant mortality and for the healthy
development of children;
(b) Improvement of all aspects of environmental and industrial hygiene;
(c) Prevention, treatment and control of epidemic, endemic, occupational and other
diseases;
(d) Creation of conditions that will guarantee all medical services and medical attention
in times of illness."
Point (c) indicates that the responsibility of the state is to take appropriate measures
to prevent the spread of an outbreak or in this case, a pandemic, to ensure that its
citizens can continue to live a dignified life without being held hostage by the virus.
Therefore, on the one hand, advance purchase agreements made by developed countries
and pharmaceutical companies are a form of developed countries fulfilling their
responsibilities for the right to health of their countries by guaranteeing a number of
vaccines to be provided for their own countries. However, referring to the basic
principle of international treaties, namely good faith, which has been regulated in
Article 26, 1969 Vienna Convention, the agreement can also be said to violate the
provisions of the principle of good faith. The principle of good faith referred to in this
case is not only keeping the agreement fulfilled by the two parties involved but how the
agreement has a broad impact and can violate the rights of other parties. The rights of
other parties in question are the rights of other countries to also fulfill the right to health
of their own citizens.
2. Research Methods:
This research uses descriptive qualitative research methods, namely a description
of the target. The point is that the author wants to explain how the role of international
trade in economic growth. The type of data used in this research is secondary data. The
secondary data used in this research is processed using descriptive analysis.
3. Results And Discussion:
International trade is trade carried out by residents of a country with residents of
other countries on the basis of mutual agreement (Anon n.d.). The population in
question can be between individuals, between individuals and the government of a
country, or the government of a country with the government of another country.
International trade is one of the main factors to increase gross domestic product (GDP).
(GDP) is the national income in the form of goods and services of a country in one year.
Economic growth is a process of changing economic conditions that occur in a country
on an ongoing basis towards a situation that is considered better over a certain period of
time (Dharmakarja 2018). There are several models of international trade, including
(Ajriah 2019):
a. Adam Smith's Theory:
Adam Smith stated that if a country can produce a good at a lower price than other
countries then the country will gain an absolute advantage. According to this theory
if the price of the same type of goods has no difference in different countries then
there is no reason to do international trade.
b. Ricardian Model:
In this theory countries specialize in producing what they are best at producing. The
framework of this model unlike other models predicts that countries will become
fully specialized rather than producing a variety of commodities. Also, the
Ricardian model does not directly include the enabling factors of
Such as the relative amounts of labor and capital in the country.
c. Heckscher Ohlin Model:
This theory argues that the pattern of international trade is determined by
differences in factor endowments. The model predicts that countries will export
goods that make intensive use of factor endowments and will import goods that
make intensive use of scarce local factors. The empirical problem with the H-O
model is known as the Leotief Paradox, which was exposed in an empirical test by
Wassily Leontief who found that the United States was more likely to export labor-
intensive goods than capital-intensive goods and so on.
d. Specific factors:
In this model, labor mobility between industries is possible when capital does not
move between industries in a short period. Factor specificity refers to the provision
that in the short run specific factors of production, such as physical capital, are not
easily transferred between industries. This theory implies that if there is an increase
in the price of a good, the owner of the factor of production specific to that good
will in real terms. This model is suitable for understanding income distribution but
not for determining trade patterns.
e. Gravity Model:
This model provides a more empirical analysis of trade patterns. Gravity models
essentially predict trade based on the distance between countries and the interaction
between countries in terms of their economic size. This model has been proven to
be empirically robust by econometric analysis. Other factors such as income levels,
diplomatic relations and trade policies are also included in the larger version of the
model.
Import is the activity of purchasing goods or services from abroad into the
country, while export is the activity of selling goods and services from within the
country to abroad. In the implementation of international trade, there will be various
complexities that are more complex than domestic trade. That the complexity is due to
sellers and buyers from different countries, customs taxes, language differences,
currencies, scale sizes, trade laws and so on (Purba 2021).
Research on themes that intersect with international trade and economic growth
has been conducted before, namely that international trade has a significant effect on
economic growth. Exports and imports have results that have a significant effect and
have a positive relationship with economic growth. As well as investment has a
significant effect and has a positive relationship with economic growth (Hariwijaya
2020) where partially exports have no effect on economic growth. Indonesia's economic
growth, but simultaneously exports and imports have an influence on Indonesia's
economic growth (Zatira 2021) and that foreign trade with export and import activities
has an influence or impact on economic growth. This is also in line with the theory of
international trade put forward by Heckscher Ohlin which states that Net-exports or net
exports are one of the important factors of gross national product (GNP) or gross
national product (GNP), namely the value of goods and services originating from people
in the country and abroad so that changes in the value of Net-exports will have an
influence on changes in national income. And there is a relationship or impact between
exports and imports on a country's economic growth.
The economy of a country can be seen from the strong economic growth that
occurs in the country concerned. A country can be said to have a good economy if the
amount of production of goods and services is high. In general, international trade is
usually in the form of exports and imports between countries. International trade
relations are the most important factor of gross domestic product (GDP) which is the
national income in the form of goods and services of a country in one year so that with
the changing value of exports and imports, national income directly changes.
International trade and economic growth are two things that are interrelated
because through free markets or international trade economic growth will increase this
is very important for a country. If there is a high demand for goods, the producing
country will increase the production of these goods so that the country's economic
income increases.
This international trade also contributes to infrastructure development in the
context of national defense. So therefore every country is obliged to participate in
international trade activities, if a country does not have international trade activities,
there is no help from other countries if there is a precarious situation in the country
because its international activities are very minimal. International trade has a very
complex role for domestic production and there are several influences that work through
it:
a. Production specialization;
b. Increase in surplus investment;
c. Vent for surplus;
d. Increase in productivity.
International trade opens up new and wider market areas for domestic products.
So domestic production, which was initially limited, can now be enlarged. Resources
that were initially idle now get a channel to be utilized, because of the new market area.
Some of the things that encourage international trade are (Ajriah 2019):
a. Differences in Natural Resources
Every country has different natural resources. Indonesia has many natural resources,
including timber, petroleum, coal, tin, and rubber, but does not yet have sufficient
ability to process them. This encourages Indonesia to export raw materials to other
countries for processing.
b. Desire for more income
The driving factor of trade between countries is the desire to obtain and increase the
income of a country, so many countries make national policies in terms of exporting
and importing goods.
c. Want to expand target market
It is based on the theory that producing products on a large scale and marketing them
around the world can bring huge profits. This concept is different from the national
trading system. Where they sell the minimum possible products so as not to suffer
large losses.
d. Climate differences
The difference in climate in a country is the reason why natural resources in one
country are different from other countries. Because, the existence of natural resources
is determined by temperature, weather and certain seasons. On that basis, not all
products/services can be produced by one country. With the causes of international
trade, cross-country trade is needed to meet the needs of products that do not exist in
their country.
e. Improve the quality of human resources
So the effort to improve the quality of human resources to become better is also a
driving factor for trade between countries, so that local residents can compete
properly.
f. Transportation between countries
With the development of the times and increasingly sophisticated technology, it can
create a means of transportation that can cover all countries. The presence of this
transportation makes distribution strategy activities between countries easier and
faster. This transportation is an exchange of information, technology, and is a very
important driving factor for trade between countries.
g. Want to improve the quality of local products
By shaping market competition, preparing domestic SME entrepreneurs to go
exporting and always familiarizing themselves with international competition.
h. A sense of mutual need
Because basically human nature is a social creature that is interdependent on one
another. To improve the quality of society, products or services which aims to
increase economic growth.
i. Diplomatic Relations of Countries
This is an official relationship established between countries in friendship.
International trade will not happen if there are no good diplomatic relations between
countries.
j. Era of Globalization or Global Market
In the era of globalization or global markets, countries cannot meet their own needs,
with this making every producer able to freely issue or enter goods into the country.
This is what causes social conflict during international trade because every country
has a sense of need for one another. Global market conditions force every country to
participate in it because every country definitely needs other countries to meet its
needs.
k. Taste of the people
The tastes of the people of each region are certainly different and diverse, with this
certainly being a driver of international trade to meet the tastes of the people. Of
course this will provide great benefits for both countries, because foodstuffs are
consumed as a whole.
Meanwhile there are several benefits arising from international trade as below:
a. Meeting the need for goods and services that are not produced domestically. Factors
that influence this are: geography, climate, level of mastery of science and
technology, etc. So that with this international trade, each country is able to meet the
needs that are not produced by itself.
b. Increase the benefits of specialization. Because basically this international trade
activity is to gain profits which are realized by specialization. So even though a
country produces the same type of goods as other countries, it is better if the country
imports these goods from abroad.
c. Expanding markets and increasing profits. With the existence of international trade,
entrepreneurs can run their production tools to the maximum and sell the excess
products abroad.
d. For technology transfer. International trade allows countries to learn more efficient
production techniques and modern management strategies.
4. Conclusions:
International trade is trade carried out by residents of a country with residents of
other countries on the basis of mutual agreement. International trade carried out by
export and import activities has a very important role and impact on economic growth.
International trade opens up new and wider market areas for domestic products.
A country that conducts import-export activities has comparative, competitive,
and independence advantages in managing natural resources, and progress in
industrialization and labor. The better the economic growth of a country, the better the
economic development of a country. This economic growth is an indication of the
government's success in carrying out economic strategies because international trade is
a driver of economic growth, especially in the Vaccine business.
Basically, the state has three responsibilities, namely: respect, protect and fulfill
the right to health. The right to health is a positive right, the type of right that requires
state intervention to facilitate the fulfillment of the right to health, 20 this means, the
state has the responsibility to adopt appropriate legislative, budgetary, judicial,
promotional and other measures to fully realize the right to health.
"The measures to be taken by States Parties to the present Covenant to achieve the
full realization of this right shall include those necessary to:
(a) Provisions for the reduction of stillbirths and infant mortality and for the healthy
development of children;
(b) Improvement of all aspects of environmental and industrial hygiene;
(c) Prevention, treatment and control of epidemic, endemic, occupational and other
diseases;
(d) Creation of conditions that will guarantee all medical services and medical attention
in times of illness."
Point (c) indicates that the responsibility of the state is to take appropriate measures
to prevent the spread of an outbreak or in this case, a pandemic, to ensure that its
citizens can continue to live a dignified life without being held hostage by the virus.
Therefore, on the one hand, advance purchase agreements made by developed countries
and pharmaceutical companies are a form of developed countries fulfilling their
responsibilities for the right to health of their countries by guaranteeing a number of
vaccines to be provided for their own countries. However, referring to the basic
principle of international treaties, namely good faith, which has been regulated in
Article 26, 1969 Vienna Convention, the agreement can also be said to violate the
provisions of the principle of good faith. The principle of good faith referred to in this
case is not only keeping the agreement fulfilled by the two parties involved but how the
agreement has a broad impact and can violate the rights of other parties. The rights of
other parties in question are the rights of other countries to also fulfill the right to health
of their own citizens.
1. Research Methods:
This research uses descriptive qualitative research methods, namely a description
of the target. The point is that the author wants to explain how the role of international
trade in economic growth. The type of data used in this research is secondary data. The
secondary data used in this research is processed using descriptive analysis.
2. Results And Discussion:
International trade is trade carried out by residents of a country with residents of
other countries on the basis of mutual agreement (Anon n.d.). The population in
question can be between individuals, between individuals and the government of a
country, or the government of a country with the government of another country.
International trade is one of the main factors to increase gross domestic product (GDP).
(GDP) is the national income in the form of goods and services of a country in one year.
Economic growth is a process of changing economic conditions that occur in a country
on an ongoing basis towards a situation that is considered better over a certain period of
time (Dharmakarja 2018). There are several models of international trade, including
(Ajriah 2019):
a. Adam Smith's Theory:
Adam Smith stated that if a country can produce a good at a lower price than other
countries then the country will gain an absolute advantage. According to this theory
if the price of the same type of goods has no difference in different countries then
there is no reason to do international trade.
b. Ricardian Model:
In this theory countries specialize in producing what they are best at producing. The
framework of this model unlike other models predicts that countries will become
fully specialized rather than producing a variety of commodities. Also, the
Ricardian model does not directly include the enabling factors of
Such as the relative amounts of labor and capital in the country.
c. Heckscher Ohlin Model:
This theory argues that the pattern of international trade is determined by
differences in factor endowments. The model predicts that countries will export
goods that make intensive use of factor endowments and will import goods that
make intensive use of scarce local factors. The empirical problem with the H-O
model is known as the Leotief Paradox, which was exposed in an empirical test by
Wassily Leontief who found that the United States was more likely to export labor-
intensive goods than capital-intensive goods and so on.
d. Specific factors:
In this model, labor mobility between industries is possible when capital does not
move between industries in a short period. Factor specificity refers to the provision
that in the short run specific factors of production, such as physical capital, are not
easily transferred between industries. This theory implies that if there is an increase
in the price of a good, the owner of the factor of production specific to that good
will in real terms. This model is suitable for understanding income distribution but
not for determining trade patterns.
e. Gravity Model:
This model provides a more empirical analysis of trade patterns. Gravity models
essentially predict trade based on the distance between countries and the interaction
between countries in terms of their economic size. This model has been proven to
be empirically robust by econometric analysis. Other factors such as income levels,
diplomatic relations and trade policies are also included in the larger version of the
model.
Import is the activity of purchasing goods or services from abroad into the
country, while export is the activity of selling goods and services from within the
country to abroad. In the implementation of international trade, there will be various
complexities that are more complex than domestic trade. That the complexity is due to
sellers and buyers from different countries, customs taxes, language differences,
currencies, scale sizes, trade laws and so on (Purba 2021).
Research on themes that intersect with international trade and economic growth
has been conducted before, namely that international trade has a significant effect on
economic growth. Exports and imports have results that have a significant effect and
have a positive relationship with economic growth. As well as investment has a
significant effect and has a positive relationship with economic growth (Hariwijaya
2020) where partially exports have no effect on economic growth. Indonesia's economic
growth, but simultaneously exports and imports have an influence on Indonesia's
economic growth (Zatira 2021) and that foreign trade with export and import activities
has an influence or impact on economic growth. This is also in line with the theory of
international trade put forward by Heckscher Ohlin which states that Net-exports or net
exports are one of the important factors of gross national product (GNP) or gross
national product (GNP), namely the value of goods and services originating from people
in the country and abroad so that changes in the value of Net-exports will have an
influence on changes in national income. And there is a relationship or impact between
exports and imports on a country's economic growth.
The economy of a country can be seen from the strong economic growth that
occurs in the country concerned. A country can be said to have a good economy if the
amount of production of goods and services is high. In general, international trade is
usually in the form of exports and imports between countries. International trade
relations are the most important factor of gross domestic product (GDP) which is the
national income in the form of goods and services of a country in one year so that with
the changing value of exports and imports, national income directly changes.
International trade and economic growth are two things that are interrelated
because through free markets or international trade economic growth will increase this
is very important for a country. If there is a high demand for goods, the producing
country will increase the production of these goods so that the country's economic
income increases.
This international trade also contributes to infrastructure development in the
context of national defense. So therefore every country is obliged to participate in
international trade activities, if a country does not have international trade activities,
there is no help from other countries if there is a precarious situation in the country
because its international activities are very minimal. International trade has a very
complex role for domestic production and there are several influences that work through
it:
a. Production specialization;
b. Increase in surplus investment;
c. Vent for surplus;
d. Increase in productivity.
International trade opens up new and wider market areas for domestic products.
So domestic production, which was initially limited, can now be enlarged. Resources
that were initially idle now get a channel to be utilized, because of the new market area.
Some of the things that encourage international trade are (Ajriah 2019):
a. Differences in Natural Resources
Every country has different natural resources. Indonesia has many natural resources,
including timber, petroleum, coal, tin, and rubber, but does not yet have sufficient
ability to process them. This encourages Indonesia to export raw materials to other
countries for processing.
b. Desire for more income
The driving factor of trade between countries is the desire to obtain and increase the
income of a country, so many countries make national policies in terms of exporting
and importing goods.
c. Want to expand target market
It is based on the theory that producing products on a large scale and marketing them
around the world can bring huge profits. This concept is different from the national
trading system. Where they sell the minimum possible products so as not to suffer
large losses.
d. Climate differences
The difference in climate in a country is the reason why natural resources in one
country are different from other countries. Because, the existence of natural resources
is determined by temperature, weather and certain seasons. On that basis, not all
products/services can be produced by one country. With the causes of international
trade, cross-country trade is needed to meet the needs of products that do not exist in
their country.
e. Improve the quality of human resources
So the effort to improve the quality of human resources to become better is also a
driving factor for trade between countries, so that local residents can compete
properly.
f. Transportation between countries
With the development of the times and increasingly sophisticated technology, it can
create a means of transportation that can cover all countries. The presence of this
transportation makes distribution strategy activities between countries easier and
faster. This transportation is an exchange of information, technology, and is a very
important driving factor for trade between countries.
g. Want to improve the quality of local products
By shaping market competition, preparing domestic SME entrepreneurs to go
exporting and always familiarizing themselves with international competition.
h. A sense of mutual need
Because basically human nature is a social creature that is interdependent on one
another. To improve the quality of society, products or services which aims to
increase economic growth.
i. Diplomatic Relations of Countries
This is an official relationship established between countries in friendship.
International trade will not happen if there are no good diplomatic relations between
countries.
j. Era of Globalization or Global Market
In the era of globalization or global markets, countries cannot meet their own needs,
with this making every producer able to freely issue or enter goods into the country.
This is what causes social conflict during international trade because every country
has a sense of need for one another. Global market conditions force every country to
participate in it because every country definitely needs other countries to meet its
needs.
k. Taste of the people
The tastes of the people of each region are certainly different and diverse, with this
certainly being a driver of international trade to meet the tastes of the people. Of
course this will provide great benefits for both countries, because foodstuffs are
consumed as a whole.
Meanwhile there are several benefits arising from international trade as below:
a. Meeting the need for goods and services that are not produced domestically. Factors
that influence this are: geography, climate, level of mastery of science and
technology, etc. So that with this international trade, each country is able to meet the
needs that are not produced by itself.
b. Increase the benefits of specialization. Because basically this international trade
activity is to gain profits which are realized by specialization. So even though a
country produces the same type of goods as other countries, it is better if the country
imports these goods from abroad.
c. Expanding markets and increasing profits. With the existence of international trade,
entrepreneurs can run their production tools to the maximum and sell the excess
products abroad.
d. For technology transfer. International trade allows countries to learn more efficient
production techniques and modern management strategies.
3. Conclusions:
International trade is trade carried out by residents of a country with residents of
other countries on the basis of mutual agreement. International trade carried out by
export and import activities has a very important role and impact on economic growth.
International trade opens up new and wider market areas for domestic products.
A country that conducts import-export activities has comparative, competitive,
and independence advantages in managing natural resources, and progress in
industrialization and labor. The better the economic growth of a country, the better the
economic development of a country. This economic growth is an indication of the
government's success in carrying out economic strategies because international trade is
a driver of economic growth, especially in the Vaccine business.
Basically, the state has three responsibilities, namely: respect, protect and fulfill
the right to health. The right to health is a positive right, the type of right that requires
state intervention to facilitate the fulfillment of the right to health, 20 this means, the
state has the responsibility to adopt appropriate legislative, budgetary, judicial,
promotional and other measures to fully realize the right to health.
"The measures to be taken by States Parties to the present Covenant to achieve the
full realization of this right shall include those necessary to:
(e) Provisions for the reduction of stillbirths and infant mortality and for the healthy
development of children;
(f) Improvement of all aspects of environmental and industrial hygiene;
(g) Prevention, treatment and control of epidemic, endemic, occupational and other
diseases;
(h) Creation of conditions that will guarantee all medical services and medical attention
in times of illness."
Point (c) indicates that the responsibility of the state is to take appropriate measures
to prevent the spread of an outbreak or in this case, a pandemic, to ensure that its
citizens can continue to live a dignified life without being held hostage by the virus.
Therefore, on the one hand, advance purchase agreements made by developed countries
and pharmaceutical companies are a form of developed countries fulfilling their
responsibilities for the right to health of their countries by guaranteeing a number of
vaccines to be provided for their own countries. However, referring to the basic
principle of international treaties, namely good faith, which has been regulated in
Article 26, 1969 Vienna Convention, the agreement can also be said to violate the
provisions of the principle of good faith. The principle of good faith referred to in this
case is not only keeping the agreement fulfilled by the two parties involved but how the
agreement has a broad impact and can violate the rights of other parties. The rights of
other parties in question are the rights of other countries to also fulfill the right to health
of their own citizens.
1. Research Methods:
This research uses descriptive qualitative research methods, namely a description
of the target. The point is that the author wants to explain how the role of international
trade in economic growth. The type of data used in this research is secondary data. The
secondary data used in this research is processed using descriptive analysis.
2. Results And Discussion:
International trade is trade carried out by residents of a country with residents of
other countries on the basis of mutual agreement (Anon n.d.). The population in
question can be between individuals, between individuals and the government of a
country, or the government of a country with the government of another country.
International trade is one of the main factors to increase gross domestic product (GDP).
(GDP) is the national income in the form of goods and services of a country in one year.
Economic growth is a process of changing economic conditions that occur in a country
on an ongoing basis towards a situation that is considered better over a certain period of
time (Dharmakarja 2018). There are several models of international trade, including
(Ajriah 2019):
a. Adam Smith's Theory:
Adam Smith stated that if a country can produce a good at a lower price than other
countries then the country will gain an absolute advantage. According to this theory
if the price of the same type of goods has no difference in different countries then
there is no reason to do international trade.
b. Ricardian Model:
In this theory countries specialize in producing what they are best at producing. The
framework of this model unlike other models predicts that countries will become
fully specialized rather than producing a variety of commodities. Also, the
Ricardian model does not directly include the enabling factors of
Such as the relative amounts of labor and capital in the country.
c. Heckscher Ohlin Model:
This theory argues that the pattern of international trade is determined by
differences in factor endowments. The model predicts that countries will export
goods that make intensive use of factor endowments and will import goods that
make intensive use of scarce local factors. The empirical problem with the H-O
model is known as the Leotief Paradox, which was exposed in an empirical test by
Wassily Leontief who found that the United States was more likely to export labor-
intensive goods than capital-intensive goods and so on.
d. Specific factors:
In this model, labor mobility between industries is possible when capital does not
move between industries in a short period. Factor specificity refers to the provision
that in the short run specific factors of production, such as physical capital, are not
easily transferred between industries. This theory implies that if there is an increase
in the price of a good, the owner of the factor of production specific to that good
will in real terms. This model is suitable for understanding income distribution but
not for determining trade patterns.
e. Gravity Model:
This model provides a more empirical analysis of trade patterns. Gravity models
essentially predict trade based on the distance between countries and the interaction
between countries in terms of their economic size. This model has been proven to
be empirically robust by econometric analysis. Other factors such as income levels,
diplomatic relations and trade policies are also included in the larger version of the
model.
Import is the activity of purchasing goods or services from abroad into the
country, while export is the activity of selling goods and services from within the
country to abroad. In the implementation of international trade, there will be various
complexities that are more complex than domestic trade. That the complexity is due to
sellers and buyers from different countries, customs taxes, language differences,
currencies, scale sizes, trade laws and so on (Purba 2021).
Research on themes that intersect with international trade and economic growth
has been conducted before, namely that international trade has a significant effect on
economic growth. Exports and imports have results that have a significant effect and
have a positive relationship with economic growth. As well as investment has a
significant effect and has a positive relationship with economic growth (Hariwijaya
2020) where partially exports have no effect on economic growth. Indonesia's economic
growth, but simultaneously exports and imports have an influence on Indonesia's
economic growth (Zatira 2021) and that foreign trade with export and import activities
has an influence or impact on economic growth. This is also in line with the theory of
international trade put forward by Heckscher Ohlin which states that Net-exports or net
exports are one of the important factors of gross national product (GNP) or gross
national product (GNP), namely the value of goods and services originating from people
in the country and abroad so that changes in the value of Net-exports will have an
influence on changes in national income. And there is a relationship or impact between
exports and imports on a country's economic growth.
The economy of a country can be seen from the strong economic growth that
occurs in the country concerned. A country can be said to have a good economy if the
amount of production of goods and services is high. In general, international trade is
usually in the form of exports and imports between countries. International trade
relations are the most important factor of gross domestic product (GDP) which is the
national income in the form of goods and services of a country in one year so that with
the changing value of exports and imports, national income directly changes.
International trade and economic growth are two things that are interrelated
because through free markets or international trade economic growth will increase this
is very important for a country. If there is a high demand for goods, the producing
country will increase the production of these goods so that the country's economic
income increases.
This international trade also contributes to infrastructure development in the
context of national defense. So therefore every country is obliged to participate in
international trade activities, if a country does not have international trade activities,
there is no help from other countries if there is a precarious situation in the country
because its international activities are very minimal. International trade has a very
complex role for domestic production and there are several influences that work through
it:
a. Production specialization;
b. Increase in surplus investment;
c. Vent for surplus;
d. Increase in productivity.
International trade opens up new and wider market areas for domestic products.
So domestic production, which was initially limited, can now be enlarged. Resources
that were initially idle now get a channel to be utilized, because of the new market area.
Some of the things that encourage international trade are (Ajriah 2019):
a. Differences in Natural Resources
Every country has different natural resources. Indonesia has many natural resources,
including timber, petroleum, coal, tin, and rubber, but does not yet have sufficient
ability to process them. This encourages Indonesia to export raw materials to other
countries for processing.
b. Desire for more income
The driving factor of trade between countries is the desire to obtain and increase the
income of a country, so many countries make national policies in terms of exporting
and importing goods.
c. Want to expand target market
It is based on the theory that producing products on a large scale and marketing them
around the world can bring huge profits. This concept is different from the national
trading system. Where they sell the minimum possible products so as not to suffer
large losses.
d. Climate differences
The difference in climate in a country is the reason why natural resources in one
country are different from other countries. Because, the existence of natural resources
is determined by temperature, weather and certain seasons. On that basis, not all
products/services can be produced by one country. With the causes of international
trade, cross-country trade is needed to meet the needs of products that do not exist in
their country.
e. Improve the quality of human resources
So the effort to improve the quality of human resources to become better is also a
driving factor for trade between countries, so that local residents can compete
properly.
f. Transportation between countries
With the development of the times and increasingly sophisticated technology, it can
create a means of transportation that can cover all countries. The presence of this
transportation makes distribution strategy activities between countries easier and
faster. This transportation is an exchange of information, technology, and is a very
important driving factor for trade between countries.
g. Want to improve the quality of local products
By shaping market competition, preparing domestic SME entrepreneurs to go
exporting and always familiarizing themselves with international competition.
h. A sense of mutual need
Because basically human nature is a social creature that is interdependent on one
another. To improve the quality of society, products or services which aims to
increase economic growth.
i. Diplomatic Relations of Countries
This is an official relationship established between countries in friendship.
International trade will not happen if there are no good diplomatic relations between
countries.
j. Era of Globalization or Global Market
In the era of globalization or global markets, countries cannot meet their own needs,
with this making every producer able to freely issue or enter goods into the country.
This is what causes social conflict during international trade because every country
has a sense of need for one another. Global market conditions force every country to
participate in it because every country definitely needs other countries to meet its
needs.
k. Taste of the people
The tastes of the people of each region are certainly different and diverse, with this
certainly being a driver of international trade to meet the tastes of the people. Of
course this will provide great benefits for both countries, because foodstuffs are
consumed as a whole.
Meanwhile there are several benefits arising from international trade as below:
a. Meeting the need for goods and services that are not produced domestically. Factors
that influence this are: geography, climate, level of mastery of science and
technology, etc. So that with this international trade, each country is able to meet the
needs that are not produced by itself.
b. Increase the benefits of specialization. Because basically this international trade
activity is to gain profits which are realized by specialization. So even though a
country produces the same type of goods as other countries, it is better if the country
imports these goods from abroad.
c. Expanding markets and increasing profits. With the existence of international trade,
entrepreneurs can run their production tools to the maximum and sell the excess
products abroad.
d. For technology transfer. International trade allows countries to learn more efficient
production techniques and modern management strategies.
3. Conclusions:
International trade is trade carried out by residents of a country with residents of
other countries on the basis of mutual agreement. International trade carried out by
export and import activities has a very important role and impact on economic growth.
International trade opens up new and wider market areas for domestic products.
A country that conducts import-export activities has comparative, competitive, and
independence advantages in managing natural resources, and progress in
industrialization and labor. The better the economic growth of a country, the better the
economic development of a country. This economic growth is an indication of the
government's success in carrying out economic strategies because international trade is
a driver of economic growth, especially in the Vaccine business.
Basically, the state has three responsibilities, namely: respect, protect and fulfill
the right to health. The right to health is a positive right, the type of right that requires
state intervention to facilitate the fulfillment of the right to health, 20 this means, the
state has the responsibility to adopt appropriate legislative, budgetary, judicial,
promotional and other measures to fully realize the right to health.
"The measures to be taken by States Parties to the present Covenant to achieve the
full realization of this right shall include those necessary to:
(i) Provisions for the reduction of stillbirths and infant mortality and for the healthy
development of children;
(j) Improvement of all aspects of environmental and industrial hygiene;
(k) Prevention, treatment and control of epidemic, endemic, occupational and other
diseases;
(l) Creation of conditions that will guarantee all medical services and medical attention
in times of illness."
Point (c) indicates that the responsibility of the state is to take appropriate measures
to prevent the spread of an outbreak or in this case, a pandemic, to ensure that its
citizens can continue to live a dignified life without being held hostage by the virus.
Therefore, on the one hand, advance purchase agreements made by developed countries
and pharmaceutical companies are a form of developed countries fulfilling their
responsibilities for the right to health of their countries by guaranteeing a number of
vaccines to be provided for their own countries. However, referring to the basic
principle of international treaties, namely good faith, which has been regulated in
Article 26, 1969 Vienna Convention, the agreement can also be said to violate the
provisions of the principle of good faith. The principle of good faith referred to in this
case is not only keeping the agreement fulfilled by the two parties involved but how the
agreement has a broad impact and can violate the rights of other parties. The rights of
other parties in question are the rights of other countries to also fulfill the right to health
of their own citizens.
1. Research Methods:
This research uses descriptive qualitative research methods, namely a description
of the target. The point is that the author wants to explain how the role of international
trade in economic growth. The type of data used in this research is secondary data. The
secondary data used in this research is processed using descriptive analysis.
2. Results And Discussion:
International trade is trade carried out by residents of a country with residents of
other countries on the basis of mutual agreement (Anon n.d.). The population in
question can be between individuals, between individuals and the government of a
country, or the government of a country with the government of another country.
International trade is one of the main factors to increase gross domestic product (GDP).
(GDP) is the national income in the form of goods and services of a country in one year.
Economic growth is a process of changing economic conditions that occur in a country
on an ongoing basis towards a situation that is considered better over a certain period of
time (Dharmakarja 2018). There are several models of international trade, including
(Ajriah 2019):
a. Adam Smith's Theory:
Adam Smith stated that if a country can produce a good at a lower price than other
countries then the country will gain an absolute advantage. According to this theory
if the price of the same type of goods has no difference in different countries then
there is no reason to do international trade.
b. Ricardian Model:
In this theory countries specialize in producing what they are best at producing. The
framework of this model unlike other models predicts that countries will become
fully specialized rather than producing a variety of commodities. Also, the
Ricardian model does not directly include the enabling factors of
Such as the relative amounts of labor and capital in the country.
c. Heckscher Ohlin Model:
This theory argues that the pattern of international trade is determined by
differences in factor endowments. The model predicts that countries will export
goods that make intensive use of factor endowments and will import goods that
make intensive use of scarce local factors. The empirical problem with the H-O
model is known as the Leotief Paradox, which was exposed in an empirical test by
Wassily Leontief who found that the United States was more likely to export labor-
intensive goods than capital-intensive goods and so on.
d. Specific factors:
In this model, labor mobility between industries is possible when capital does not
move between industries in a short period. Factor specificity refers to the provision
that in the short run specific factors of production, such as physical capital, are not
easily transferred between industries. This theory implies that if there is an increase
in the price of a good, the owner of the factor of production specific to that good
will in real terms. This model is suitable for understanding income distribution but
not for determining trade patterns.
e. Gravity Model:
This model provides a more empirical analysis of trade patterns. Gravity models
essentially predict trade based on the distance between countries and the interaction
between countries in terms of their economic size. This model has been proven to
be empirically robust by econometric analysis. Other factors such as income levels,
diplomatic relations and trade policies are also included in the larger version of the
model.
Import is the activity of purchasing goods or services from abroad into the
country, while export is the activity of selling goods and services from within the
country to abroad. In the implementation of international trade, there will be various
complexities that are more complex than domestic trade. That the complexity is due to
sellers and buyers from different countries, customs taxes, language differences,
currencies, scale sizes, trade laws and so on (Purba 2021).
Research on themes that intersect with international trade and economic growth
has been conducted before, namely that international trade has a significant effect on
economic growth. Exports and imports have results that have a significant effect and
have a positive relationship with economic growth. As well as investment has a
significant effect and has a positive relationship with economic growth (Hariwijaya
2020) where partially exports have no effect on economic growth. Indonesia's economic
growth, but simultaneously exports and imports have an influence on Indonesia's
economic growth (Zatira 2021) and that foreign trade with export and import activities
has an influence or impact on economic growth. This is also in line with the theory of
international trade put forward by Heckscher Ohlin which states that Net-exports or net
exports are one of the important factors of gross national product (GNP) or gross
national product (GNP), namely the value of goods and services originating from people
in the country and abroad so that changes in the value of Net-exports will have an
influence on changes in national income. And there is a relationship or impact between
exports and imports on a country's economic growth.
The economy of a country can be seen from the strong economic growth that
occurs in the country concerned. A country can be said to have a good economy if the
amount of production of goods and services is high. In general, international trade is
usually in the form of exports and imports between countries. International trade
relations are the most important factor of gross domestic product (GDP) which is the
national income in the form of goods and services of a country in one year so that with
the changing value of exports and imports, national income directly changes.
International trade and economic growth are two things that are interrelated
because through free markets or international trade economic growth will increase this
is very important for a country. If there is a high demand for goods, the producing
country will increase the production of these goods so that the country's economic
income increases.
This international trade also contributes to infrastructure development in the
context of national defense. So therefore every country is obliged to participate in
international trade activities, if a country does not have international trade activities,
there is no help from other countries if there is a precarious situation in the country
because its international activities are very minimal. International trade has a very
complex role for domestic production and there are several influences that work through
it:
a. Production specialization;
b. Increase in surplus investment;
c. Vent for surplus;
d. Increase in productivity.
International trade opens up new and wider market areas for domestic products.
So domestic production, which was initially limited, can now be enlarged. Resources
that were initially idle now get a channel to be utilized, because of the new market area.
Some of the things that encourage international trade are (Ajriah 2019):
a. Differences in Natural Resources
Every country has different natural resources. Indonesia has many natural resources,
including timber, petroleum, coal, tin, and rubber, but does not yet have sufficient
ability to process them. This encourages Indonesia to export raw materials to other
countries for processing.
b. Desire for more income
The driving factor of trade between countries is the desire to obtain and increase the
income of a country, so many countries make national policies in terms of exporting
and importing goods.
c. Want to expand target market
It is based on the theory that producing products on a large scale and marketing them
around the world can bring huge profits. This concept is different from the national
trading system. Where they sell the minimum possible products so as not to suffer
large losses.
d. Climate differences
The difference in climate in a country is the reason why natural resources in one
country are different from other countries. Because, the existence of natural resources
is determined by temperature, weather and certain seasons. On that basis, not all
products/services can be produced by one country. With the causes of international
trade, cross-country trade is needed to meet the needs of products that do not exist in
their country.
e. Improve the quality of human resources
So the effort to improve the quality of human resources to become better is also a
driving factor for trade between countries, so that local residents can compete
properly.
f. Transportation between countries
With the development of the times and increasingly sophisticated technology, it can
create a means of transportation that can cover all countries. The presence of this
transportation makes distribution strategy activities between countries easier and
faster. This transportation is an exchange of information, technology, and is a very
important driving factor for trade between countries.
g. Want to improve the quality of local products
By shaping market competition, preparing domestic SME entrepreneurs to go
exporting and always familiarizing themselves with international competition.
h. A sense of mutual need
Because basically human nature is a social creature that is interdependent on one
another. To improve the quality of society, products or services which aims to
increase economic growth.
i. Diplomatic Relations of Countries
This is an official relationship established between countries in friendship.
International trade will not happen if there are no good diplomatic relations between
countries.
j. Era of Globalization or Global Market
In the era of globalization or global markets, countries cannot meet their own needs,
with this making every producer able to freely issue or enter goods into the country.
This is what causes social conflict during international trade because every country
has a sense of need for one another. Global market conditions force every country to
participate in it because every country definitely needs other countries to meet its
needs.
k. Taste of the people
The tastes of the people of each region are certainly different and diverse, with this
certainly being a driver of international trade to meet the tastes of the people. Of
course this will provide great benefits for both countries, because foodstuffs are
consumed as a whole.
Meanwhile there are several benefits arising from international trade as below:
a. Meeting the need for goods and services that are not produced domestically. Factors
that influence this are: geography, climate, level of mastery of science and
technology, etc. So that with this international trade, each country is able to meet the
needs that are not produced by itself.
b. Increase the benefits of specialization. Because basically this international trade
activity is to gain profits which are realized by specialization. So even though a
country produces the same type of goods as other countries, it is better if the country
imports these goods from abroad.
c. Expanding markets and increasing profits. With the existence of international trade,
entrepreneurs can run their production tools to the maximum and sell the excess
products abroad.
d. For technology transfer. International trade allows countries to learn more efficient
production techniques and modern management strategies.
3. Conclusions:
International trade is trade carried out by residents of a country with residents of
other countries on the basis of mutual agreement. International trade carried out by
export and import activities has a very important role and impact on economic growth.
International trade opens up new and wider market areas for domestic products.
A country that conducts import-export activities has comparative, competitive, and
independence advantages in managing natural resources, and progress in
industrialization and labor. The better the economic growth of a country, the better the
economic development of a country. This economic growth is an indication of the
government's success in carrying out economic strategies because international trade is
a driver of economic growth, especially in the Vaccine business.
