Analysis of Competitiveness and Efficiency the Export of Essential Oils from Indonesia

Rahmatun Nisa, Tony Irawan and Widyastutik

International Journal of Scientific Research in Science and Technology, 2024, vol. 11, issue 4, 39-52

Abstract: This study analyzes the competitiveness, efficiency, and factors influencing Indonesia's essential oils exports using the Stochastic Frontier Gravity Model (SFGM). The main variables examined include Gross Domestic Product (GDP), Revealed Comparative Advantage (RCA), population, exchange rate, and geographical distance. The findings indicate that Indonesian essential oils are highly competitive in international markets, particularly in France, Spain, and Switzerland. Significant factors affecting export value include the real GDP of the destination country, RCA, population, exchange rate, and geographical distance. Additionally, inefficiency factors are influenced by area, language, business freedom, investment freedom, and financial freedom. Export efficiency is categorized into five levels. This study provides empirical insights into the impact of economic and non-economic factors on the export performance of Indonesian essential oils, offering valuable implications for policymakers and industry stakeholders to enhance global competitiveness and efficiency.

Keywords: Competitiveness; Efficiency; Essential Oil Exports; Stochastic Frontier Gravity Model; Indonesia (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ijsrst.com/home/article/view/IJSRST24114103 Abstract page (text/html)
https://ijsrst.com/home/article/download/IJSRST24114103/IJSRST24114103 Full text (application/pdf)

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:etm:ijsrst:v11:y2024:i4:id:256

DOI: 10.32628/IJSRST24114103

Access Statistics for this article

More articles in International Journal of Scientific Research in Science and Technology from Technoscience Academy
Bibliographic data for series maintained by Pankaj Sharma ().