Export intensity and competitiveness of Indonesia's crude palm oil to main destination countries

Fachry Husein Rosyadi, Jangkung Handoyo Mulyo, Hani Perwitasari and Dwidjono Hadi Darwanto
Additional contact information
Fachry Husein Rosyadi: Faculty of Agriculture, Gadjah Mada University, Yogyakarta, Indonesia
Hani Perwitasari: Faculty of Agriculture, Gadjah Mada University, Yogyakarta, Indonesia
Dwidjono Hadi Darwanto: Faculty of Agriculture, Gadjah Mada University, Yogyakarta, Indonesia

Agricultural Economics, 2021, vol. 67, issue 5, 189-199

Abstract: Palm oil is a superior product from Indonesia that is continuously and widely used for daily needs such as cooking, grooming, and manufacturing. However, this potential must be supported by oil palm business actors' performance to maintain its intensity and competitiveness. This study investigates how various factors affect Indonesia's crude palm oil (CPO) export intensity and competitiveness by employing panel regression and the basic gravity model. The panel data used here is a 20-year time series with cross-sections from five major importers from 1999 to 2018. The results show that the importer's gross domestic product (GDP) and quantity of export significantly and positively affect Indonesia's CPO export intensity, while the exporter's GDP and economic distance has a significant and negative effect. The factors that positively and significantly influence competitiveness are soybean's import value and Roundtable on Sustainable Palm Oil (RSPO) certification, while Malaysian CPO's export and population of importing countries negatively affect Indonesian CPO competitiveness.

Keywords: bilateral trade; export; gravity model; panel data; revealed comparative advantage (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://agricecon.agriculturejournals.cz/doi/10.17221/371/2020-AGRICECON.html (text/html)
http://agricecon.agriculturejournals.cz/doi/10.17221/371/2020-AGRICECON.pdf (application/pdf)
free of charge

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:caa:jnlage:v:67:y:2021:i:5:id:371-2020-agricecon

DOI: 10.17221/371/2020-AGRICECON

Access Statistics for this article

Agricultural Economics is currently edited by Ing. Zdeňka Náglová, Ph.D.

More articles in Agricultural Economics from Czech Academy of Agricultural Sciences
Bibliographic data for series maintained by Ivo Andrle ().