IS INDONESIA EXPORT CONSISTENT WITH THE FACTOR PROPORTIONS THEORY?

Indonesia survived the global financial crisis in part due to its greater exports. In general, the unit value of twenty major commodities exported from Indonesia increasedduring 1996-2010.However, during times of crises, they decrease, In the 1997 crisis, the unit values fell dramaticallyand it took time to recover, while in 2008,they experiencedan immediaterebound.Likewise,the trend is also sharedwith Japan and Vietnam. The unit values of commoditiesexported from both countries increased.In addition,the unit values of Japan's exportsare higher than these values of Indonesia and Vietnam. This gap appears to be constantly increasing over the period of observationwithouta sign of convergence.This findingconfirmsthe factor proportion(Heckscher-Ohlin)theoryand is consistentwith findingsby Schott(2001)