statistic
t
table
, the independent variable is success fully explains the dependent variable perfectly, or it’s significant Gujarati, 2003.
d. Determination Coefficient Test of R
2
R
2
test goal, is to show whether independent variables are good to explain the dependent variable. R
2
values are 0-1 0 R
2
1. Suppose R
2
value = 1, it means that the independent variable perfectly explains the dependent variable. Otherwise, suppose R
2
value = 0, the independent variable is not strong enough to explain the dependent variable. The basic
weaknesses in using this determination coefficient it’s bias to dependent variable. R
2
will increase no matter the independent variable impact significant or not to dependent variable, because of that reason so many
researchers suggest to use adjusted R
2
while regress the best of regression model. Adjusted R
2
is very different from R
2
value. R
2
value can increase and decrease if one of the independent variables is added into the model. The
main purpose of this test is to measure how the model can explain the independent variable variation.
CHAPTER IV FINDINGS AND ANALYSIS
4.1 Description of Research Objects
ASEAN is a regional organization in South East Asia. It was established in 1967 under the Bangkok Declaration, with five original member countries:
Thailand, Malaysia, Singapore, the Philippines and Indonesia. Latter it is called ASEAN 5. Brunei Darussalam joined in ASEAN in 1984. ASEAN then is called
ASEAN 6, with relatively developed economies in Southeast Asia. Now ASEAN has ten member countries with Vietnam joining in 1995, Laos and Myanmar in
1997 and Cambodia in April 1999. The latest 4 members are called ASEAN 4, or CLMV. The whole ASEAN member countries are called ASEAN 10, and if
Vietnam and Laos are not included, it is called ASEAN 8. Nowadays, the ASEAN region has a population of about 500 million, a total area of 4.5million square
kilometers, a combined gross domestic product GDP of US737 billion, and a total trade of US720 billion. ASEAN FTA AFTA is the earliest FTA in Asia,
which was initiated in 1992 Yi, 2005. Different from the two major regional integrations respectively in Europe
and the North Americas, EU faced internal pressure politically in Europe internal security issue, namely to restrain Germany, and external pressure politically from
former Soviet Union, and Economically from the U.S. , ASEAN creation was not necessarily logical. If one considers the circumstances of the five original
countries, each of which was widely diverse, and all of which were linked to
