Croatian International Relations Review

For article submissions, as well as any inquiries, you are welcome to write to [email protected]

Hadi Prabowo
Obsatar Sinaga

In the modern age, the trade free integration has become an integral part which is playing a significant part for the international relations. For enhancing cross border cost-effective accomplishments, the free trade integration role is an important which could help to enhance the international relations. Therefore, the research aim is to investigate the free trade integration and cross border entrepreneurship role in development of international relations. To get this objective, the relationship among free trade integration (FRTI), financial integration (FII), cross border entrepreneurship (CRBE), bilateral trade (BIT), and international relations (INR) was being inspected. The data was collected through self-administered questionnaire from the 200 from Indonesia and 130 from Malaysia by using purposive sampling technique. The research design was quantitative, and research approach was quantitative, and applied partial Least Square (PLS)-Structural Equation Modeling (SEM). The key outcomes shown that FRTI has positive and significant effect on FII, BII, CRBE and IR. In the same vein, the key findings also shown that BIT and FII also significantly and positively effect to CRBE. On the other hand, it was also further found that BIT, FII significantly and positively mediated between the relationship of FRTI and CRBE. The further findings shown that CRBE also significantly mediated between the relationship of FRTI and INR. All these accepted hypotheses added a body of literature in the extant literature that could add a body of literature in the extant literature that could become a new research area in future. This is a reason the current research has a valuable contribution in the literature through the relationship among FII, BIT, CRBE, FRTI and INR.

Keywords: Free Trade, International Relations, Malaysia, and Indonesia.