Teak Furniture And Business Responsibility: A Global Value Chain Dynamics Approach

Herry Purnomo

Economics and Finance in Indonesia, 2006, vol. 54, 407-439

Abstract: Teak furniture business development aims at achieving the three millennium development goals of global partnership, poverty alleviation and environmental sustainability. A value chain of teak furniture connects teak growers with furniture retailers in Europe, the United States and Japan. It distributes value added along the chain, but it produces imbalance of income distribution and pressure on teak plantation sustainability. This paper integrates value chain analysis and systems dynamic approach to observe baseline trends and glimpse future scenarios of teak forest and incomes to various actors participating in the teak business. Future scenarios to obtain premium prices through Fair Trade and business responsibility of international furniture retailers will not only restore the teak furniture business but also foster great leaps in teak plantation sustainability and the livelihoods of teak growers and small to medium-sized teak furniture enterprises. Collective action among them in defining rules and a low level of land conflicts are necessary conditions for success.

Keywords: Teak; Furniture Industries; Value Chain; Business Responsibility; Scenario (search for similar items in EconPapers)
JEL-codes: A13 C40 D21 L73 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:lpe:efijnl:200614

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