IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v10y2022i6p132-d834132.html
   My bibliography  Save this article

The Determinants of Competitiveness in Global Palm Oil Trade

Author

Listed:
  • Hansen Tandra

    (Resource and Environmental Economics, Faculty of Economic and Management, IPB University, Bogor 16680, Indonesia)

  • Arif Imam Suroso

    (School of Business, IPB University, Bogor 16151, Indonesia)

  • Yusman Syaukat

    (Resource and Environmental Economics, Faculty of Economic and Management, IPB University, Bogor 16680, Indonesia)

  • Mukhamad Najib

    (Department of Management, Faculty of Economic and Management, IPB University, Bogor 16680, Indonesia)

Abstract

Palm oil is an essential commodity used in the manufacture of various daily products and is highly competitive with vegetable oil. However, the palm oil competition is fierce and complex due to movement of palm oil trade. The study examined the determinant, stability, and duration of competitiveness in the global palm oil trade involving countries worldwide. This research was analyzed from 1996 to 2019 using descriptive analysis, panel regression, stability, and Kaplan–Meier tests. The results showed that palm oil supply in the global market is centralized with distributed demand. The competitiveness of palm oil based on revealed symmetric comparative advantage (RSCA) and trade balance index (TBI) is similar to its suppliers globally. The positive factors that determine the competitiveness in the global palm oil trade are population and import of animal or vegetable fats and oils. GDP per capita and dummy RSPO negatively affect competitiveness. The stability and duration analysis showed that the global palm oil market is highly competitive.

Suggested Citation

  • Hansen Tandra & Arif Imam Suroso & Yusman Syaukat & Mukhamad Najib, 2022. "The Determinants of Competitiveness in Global Palm Oil Trade," Economies, MDPI, vol. 10(6), pages 1-20, June.
    • Handle: RePEc:gam:jecomi:v:10:y:2022:i:6:p:132-:d:834132
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/10/6/132/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/10/6/132/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kevin Honglin Zhang, 2015. "What Drives Export Competitiveness? The Role Of Fdi In Chinese Manufacturing," Contemporary Economic Policy, Western Economic Association International, vol. 33(3), pages 499-512, July.
    2. Štefan Bojnec & Imre Fertő, 2008. "European Enlargement and Agro‐Food Trade," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 563-579, December.
    3. Paolo Guerrieri & Filippo Vergara Caffarelli, 2012. "Trade Openness and International Fragmentation of Production in the European Union: The New Divide?," Review of International Economics, Wiley Blackwell, vol. 20(3), pages 535-551, August.
    4. Kym Anderson & Signe Nelgen, 2012. "Agricultural trade distortions during the global financial crisis," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 28(2), pages 235-260, SUMMER.
    5. Bent Dalum & Keld Laursen & Gert Villumsen, 1998. "Structural Change in OECD Export Specialisation Patterns: de-specialisation and 'stickiness'," International Review of Applied Economics, Taylor & Francis Journals, vol. 12(3), pages 423-443.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adhikari, Shweta & Poudel, Dikshit & Gopinath, Munisamy, 2023. "Is Policy Greasing the Wheels of Global Palm Oil Trade?," Research on World Agricultural Economy, Nan Yang Academy of Sciences Pte Ltd (NASS), vol. 4(2), June.
    2. Ariodillah Hidayat & Bernadette Robiani & Taufiq Marwa & Suhel Suhel, 2023. "Competitiveness, Market Structure, and Energy Policies: A Case Study of the World s Largest Crude Palm Oil Exporter," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 111-121, May.
    3. Hidayat, Ariodillah & Robiani, Bernadette & Marwa, Taufiq & Suhel, Suhel & Susetyo, Didik & Mukhlis, Mukhlis, 2024. "A Crude Palm Oil Industry Concentration and Influencing Factors: A Case Study of Indonesia as the World's Largest Producer," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 16(01), March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jámbor, Attila & Tóth, Andrea Tímea & Kőröshegyi, Domonkos, 2017. "Az agrárexport versenyképessége - a nemzetközi fűszer-kereskedelem esete [Export competitiveness in agriculture: the case of the international spice trade]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1202-1223.
    2. Štefan Bojnec & Imre Fertő, 2017. "Quality Upgrades of EU Agri-Food Exports," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(1), pages 269-279, February.
    3. Ronen, Eyal & Benizri, Yohan, 2018. "Export Competitiveness and Trade Agreements: Analysis and Insights from Israel’s Experience," MPRA Paper 84945, University Library of Munich, Germany.
    4. Hoang, Viet Van & Tran, Khai Tien & Tu, Binh Van, 2017. "Assessing the Agricultural Competitive Advantage by the RTA index: A Case Study in Vietnam," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 9(3), September.
    5. Bojnec, Štefan & Fertő, Imre, 2018. "Economic Crisis and the Fragility of Comparative Advantage in European Agriculture," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 67(3), September.
    6. Jambor, Attila, 2013. "Comparative Advantages and Specialisation of the Visegrad Countries Agri-Food Trade," Acta Oeconomica et Informatica, Faculty of Economics and Management, Slovak Agricultural University in Nitra (FEM SPU), vol. 16(01), pages 1-13, February.
    7. Nenci, Silvia & Vurchio, Davide, 2023. "Modeling country-sectoral spillovers in generalized propensity score matching: An empirical test on trade data," Economic Modelling, Elsevier, vol. 124(C).
    8. Viet V. Hoang, 2019. "Investigating the evolution of agricultural trade specialization in transition economies: A case study from Vietnam," The International Trade Journal, Taylor & Francis Journals, vol. 33(4), pages 361-378, July.
    9. Ferto, Imre & Bojnec, Stefan, 2015. "Quality upgrading in the European-Union agri-food exports," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204225, Agricultural Economics Society.
    10. Jambor, Atilla & Toth, Andrea Timea & Koroshegyi, Domonkos, 2017. "The Export Competitiveness of Global Cocoa Traders," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 9(3), September.
    11. Kym Anderson & Maros Ivanic & William J. Martin, 2014. "Food Price Spikes, Price Insulation, and Poverty," NBER Chapters, in: The Economics of Food Price Volatility, pages 311-339, National Bureau of Economic Research, Inc.
    12. Beňo, Michal, 2021. "E-working: Country Versus Culture Dimension," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 13(2), June.
    13. Keld Laursen, 1998. "How Structural Change Differs, and Why it Matters (for Economic Growth)," DRUID Working Papers 98-25, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    14. Dominika Choros-Mrozowska, 2020. "Changes and Comparisons in Pattern of Polish Chinese Trade within the “16+1” Format," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 327-342.
    15. Zdráhal, Ivo, 2024. "The Revealed Comparative Advantage of Agri-Food Industries in Selected Countries in the Central and Eastern Europe: Gross-Versus Value-Added Trade Flows," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 16(2), June.
    16. Tudorel Andrei & Bogdan Oancea & Andreea Mirică, 2022. "Agriculture export variety and the short and long run impact on agriculture export," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(4), pages 137-145.
    17. Keppel, Catherine & Prettner, Klaus, 2015. "How interdependent are Eastern European economies and the Euro area?," The Quarterly Review of Economics and Finance, Elsevier, vol. 58(C), pages 18-31.
    18. Marin, Giovanni & Vona, Francesco, 2023. "Finance and the reallocation of scientific, engineering and mathematical talent," Research Policy, Elsevier, vol. 52(5).
    19. Wiktor Kupsik & Karolina Pawlak, 2024. "Competitive Position of EU Candidate Countries and Eastern Partnership Countries in Trading Fruit and Vegetables in the Single European Market," Agriculture, MDPI, vol. 14(11), pages 1-19, November.
    20. ZHANG, Kevin H., 2017. "FDI, Export Sophistications, and Export Upgrading in Emerging Economies: Evidence from Chinese Manufacturings," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 70(2), pages 245-260.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:10:y:2022:i:6:p:132-:d:834132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.