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Competitiveness Analysis and Factors Affecting Indonesian Cinnamon Exports

Author

Listed:
  • Dini Rochdiani

    (Department of Agricultural Social and Economics, Faculty of Agriculture, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Eliana Wulandari

    (Department of Agricultural Social and Economics, Faculty of Agriculture, Universitas Padjadjaran, Sumedang 45363, Indonesia)

Abstract

Cinnamon is one of the plantation spice commodities that contributes to the Indonesian economy. Indonesia is the largest exporter country in the world regarding the total export volume of cinnamon, but regarding the total value of exports, Indonesia comes in second after Sri Lanka. This study aims to analyze the comparative competitiveness of Indonesian cinnamon among major competitors in the United States’ market and to analyze the factors that influence the competitiveness of Indonesian cinnamon exports in the United States. The data used in this study comprise secondary data from 2007 to 2021 obtained from various data sources. The revealed comparative advantage method was used in a comparative competitiveness analysis. Moreover, the factors that affect the competitiveness of Indonesian cinnamon exports in the United States were analyzed using the ordinary least squares method. The results of the analysis show that Indonesian cinnamon is competitive in the United States’ market, but Sri Lanka’s cinnamon exports have stronger competitiveness than Indonesia’s in the United States’ market. The results of the ordinary least squares method show that the exchange rate of the IDR (rupiah) against the USD, the volume of Indonesian cinnamon exports, the GDP per capita of the USA and the value of cinnamon exports to the USA have a significant effect on the competitiveness of Indonesian cinnamon exports to the United States.

Suggested Citation

  • Dini Rochdiani & Eliana Wulandari, 2023. "Competitiveness Analysis and Factors Affecting Indonesian Cinnamon Exports," Economies, MDPI, vol. 11(2), pages 1-14, February.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:2:p:55-:d:1059784
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    References listed on IDEAS

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    1. repec:idn:journl:v:15:y:2013:i:3j:p:1-14 is not listed on IDEAS
    2. Muhammad Munwar Hayat & Raheela Khatoon, 2021. "Determinants of Basmati Exports from Pakistan: A Panel Data Analysis," Journal of Economic Impact, Science Impact Publishers, vol. 3(1), pages 12-18.
    3. Evi Thelia Sari & Maria Rochelle G. Divinagracia, 2021. "Revealed comparative advantage and constant market share analysis of Indonesian cinnamon in the world market," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 14(2), pages 187-198.
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