Prices and competitiveness of Indonesian natural rubber exports under the Agreed Export Tonnage Scheme (AETS) policy

Imade Yoga Prasada, Aura Dhamira, Dinda Dewi Aisyah and Ayu Putri Merry Anisya

International Journal of Trade and Global Markets, 2025, vol. 21, issue 4, 439-461

Abstract: The International Tripartite Rubber Council (ITRC) implements the Agreed Export Tonnage Scheme (AETS) policy as an effort to stabilise the price of natural rubber on the international market by limiting the volume of natural rubber exports from ITRC member countries, including Indonesia. This research was conducted with the aim of evaluating the impact of the AETS policy implementation on the price and competitiveness of Indonesian natural rubber exports in destination countries. The data used is secondary data and is arranged in the form of panel data from 26 countries within the period of 2000 to 2022. The data was analysed using the RCA method, the two-stage least squares (2SLS) model, and the PSM model. Results show that the AETS policy implemented has not been able to have a significant impact on increasing the export price of Indonesian natural rubber. However, higher export prices have a negative relationship with the competitiveness of Indonesian natural rubber exports in destination countries.

Keywords: AETS; Agreed Export Tonnage Scheme; competitiveness; natural rubber; price; 2SLS; two-stage least squares. (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=148619 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijtrgm:v:21:y:2025:i:4:p:439-461

Access Statistics for this article

More articles in International Journal of Trade and Global Markets from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().