Angsoka Yorintha Paundralingga: I am very grateful that the authors made several substantial revisions based on my previous comment. The 2008–09 global financial crisis was followed by the decline of international trade. It simultaneously opened an opportunity for inter-Asia trade to flourish. This highlights the significance of this paper because it articulates clearly those inter-Asia trading phenomena.

For Indonesian economists and policymakers, this paper provides facts about differences between Korean and Japanese firms, which have been long awaited. In particular, we recognize the pattern of Japanese vertical FDI in Indonesia, which was then followed by higher export. It seems that the Japanese affiliate firms were developed to serve the foreign (non-Indonesian) market. The opposite is the case for Korean affiliate firms, which were developed to serve the domestic (Indonesian) market.

I like the paper's use of regression using firm size because it is in line with Melitz theory, which explains...

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