The Impact of Utilization Free Trade Agreements (FTA) and Fiscal Facilities KITE-IKM on the Export Performance of Small and Medium Enterprises (SMEs)
DOI:
https://doi.org/10.46799/ajesh.v3i9.396Keywords:
Free Trade Agreements, Fiscal Facilities KITE-IKM, Export Performance, Small and Medium EnterprisesAbstract
The purpose of this research was to determine and analyze the impact of the utilization of free trade agreements and KITE-IKM fiscal facilities on the export performance of small and medium enterprises. This study uses a random effects panel data method at the firm level to determine the impact of FTA and KITE-IKM facilities on the export performance of SMEs in Indonesia. The data used is panel data with a time span from 2019 to 2023. The unit of analysis is SME exporters in Indonesia. The dependent variable is the value of SME exports, and the independent variables are FTA and KITE-IKM fiscal policies, taking into account factors such as the real effective exchange rate (REER), company characteristics, and company management. The results of the analysis show that FTA and KITE-IKM policies have a positive and significant impact on SMEs' export performance. The control variables (Real Effective Exchange Rate, Firm Scale, Furniture Sector, and COVID) also show a positive and significant relationship with SMEs' export performance. This research has implications for the importance of governments and policymakers to continue to support and optimize free trade agreements (FTAs) and fiscal policies such as KITE-IKM in order to encourage SME export growth in Indonesia.
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