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

Rahmatun Nisa; Tony Irawan; Widyastutik

doi:10.32628/IJSRST24114103

Authors

Rahmatun Nisa Department of Economics, Institut Pertanian Bogor, Bogor, Jawa Barat, Indonesia Author
Tony Irawan International Trade Analysis and Policy Studies, Bogor Agricultural University, Bogor, West Java, Indonesia Author
Widyastutik International Trade Analysis and Policy Studies, Bogor Agricultural University, Bogor, West Java, Indonesia Author

DOI:

https://doi.org/10.32628/IJSRST24114103

Keywords:

Competitiveness, Efficiency, Essential Oil Exports, Stochastic Frontier Gravity Model, Indonesia

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.

Downloads

Download data is not yet available.

References

A. Aigner D, Lovell CAK, Shicmdt P. 1977. Formulation and Estimation of Stochastic Frontier Production Function Models. Journal of Econometrics. 6:21-37. DOI: https://doi.org/10.1016/0304-4076(77)90052-5

Ameh OE, Achika JL, Bello NM, Owolaja AJ. 2021. Extraction and Formulation of perfume from Cymbopogon citratus (lemongrass). 25(8): 1461-1464. DOI: https://doi.org/10.4314/jasem.v25i8.27

Anderson, J.E., Wincoop. 2003. “Gravity with Gravitas: A Solution to the Border Puzzle.” The American Economic Review 93 (1): 170–192. DOI: https://doi.org/10.1257/000282803321455214

Atif RM, Halyun L, Mahmood H,.2017. Pakistan’s agricultural exports, determinants and its potential: an application of stochastic frontier gravity model. The Journal of International Trade & Economic Development 26(3): 257:276 DOI: https://doi.org/10.1080/09638199.2016.1243724

Chu K. 2023. Digital Economy, China International Trade Potential, Industries of BRI countries: Evidence from Stochastic Frontier Gravity Model. Frontiers in Business, Economics and Management. 12(2): 172-178 DOI: https://doi.org/10.54097/fbem.v12i2.14875

Ebaidalla EM dan Ali MEM. 2023. Assessing Intra-Arab Trade Integration and Potential: Evidence from the Stochastic Frontier Gravity Model. The International Trade Journal. 37(2): 221-239. https://doi.org/10.1080/08853908.2022.2029725. DOI: https://doi.org/10.1080/08853908.2022.2029725

Ekananda. 2015. Ekonomi Internasional. ID: Erlangga.

Fitriani E. 2019. Analisis Pengaruh Perdagangan Internasional terhadap Pertumbuhan Ekonomi Indonesia. Jurnal Riset Bisnis dan Manajemen. 9: 18-26. DOI: https://doi.org/10.34010/jurisma.v9i1.1414

Haque AF, Dewi B, Hartati L.2022. Formulasi dan Evaluasi Fisik Sediaan Gel Hand Sanitizer Minyak Atsiri Jeruk Kamansi (Citrus macrocarpa Bunge). Ilmu Kefarmasian. 3(1): DOI: https://doi.org/10.31764/lf.v3i1.7032

Hidayat, A. (2019). Dampak Kebijakan Pemerintah terhadap Efisiensi Ekspor Minyak Atsiri Indonesia. Jurnal Ekonomi dan Kebijakan, 11(2), 123-138.

Indrawati, S. (2019). Pengaruh Harga dan Kualitas Produk terhadap Ekspor Minyak Atsiri Indonesia. Jurnal Ekonomi dan Manajemen, 10(1), 78-92.

Jiang W, Zhang H, Lin Y. 2021. Trade Sustainability and Efficiency under the Belt and Road Initiative: A Stochastic Frontier Analysis of China’s Trade Potential at Industry Level. Emerging Markets Finance and Trade. 1-13. DOI: 10.1080/1540496X.2021.1925246. DOI: https://doi.org/10.1080/1540496X.2021.1925246

Kalirajan K. 2007. Regional Cooperation and Bilateral Trade Flows: An Empirical Measurement of Resistance. The International Trade Journal. 21(2):85-107. DOI: https://doi.org/10.1080/08853900701266555

Kang, H., Fratianni, M., 2006. International trade efficiency, the gravity equation, and the stochastic frontier, Social Science. Electron. Publish. 12, 1–27. https://doi.org/ 10.2139/ssrn.952848. DOI: https://doi.org/10.2139/ssrn.952848

[KEMENDAG] Kementerian Perdagangan. 2022. 10 Komoditas Utama dan Potensial [internet]. [diunduh pada September 2022]. Tersedia pada http://www.kemendag.go.id.

[KEMENTAN] Kementerian Pertanian. 2023. Serba-serbi Minyak Atsiri Indonesia dan Potensi Pengembangannya untuk Pasar Internasional [internet]. [diunduh pada November 2023]. Tersedia pada https://bisip.bsip.pertanian.go.id/

Kusuma, R. (2018). Dampak Ekonomi Makro Negara Tujuan terhadap Ekspor Minyak Atsiri Indonesia. Jurnal Manajemen dan Bisnis, 9(3), 101-115.

Kordali S, Cakir A, Mavi A, Kilic H, Yildrim A. 2005. Screening of Chemical Composition and Antifungal and Antioxidant Activities of the essential Oils from Three Turkish Artemisia Species. Agricultural and Food Chemistry. 53(5): 1408-1416. DOI: https://doi.org/10.1021/jf048429n

Kumar S, Prabhakar P. 2017. India’s Trade Potential and Free Trade Agreements: A Stochastic Frontier Gravity Approach. Global Economy Journal. 17(1):1-19. doi.org/10.1515/gej-2016-0074. DOI: https://doi.org/10.1515/gej-2016-0074

Pratama, R. (2019). Pengaruh Populasi dan GDP Mitra Dagang terhadap Ekspor Indonesia ke ASEAN-5. Jurnal Ekonomi dan Bisnis ASEAN, 11(4), 134-150.

Rahmawati, E. (2020). Inovasi Teknologi dalam Proses Produksi Minyak Atsiri di Indonesia. Jurnal Teknologi dan Industri, 9(4), 189-205.

Ravishankar G, Stack M.M. (2014): The gravity model and trade efficiency: A stochastic frontier analysis of Eastern European countries' potential trade. The World Economy, 37: 690–704. DOI: https://doi.org/10.1111/twec.12144

Santoso, D. (2018). Analisis Efisiensi Produksi dan Ekspor Minyak Atsiri di Indonesia. Jurnal Ekonomi dan Pembangunan, 13(3), 145-160.

Supriyadi, E. (2019). Analisis Pengaruh Pertumbuhan Ekonomi Negara Tujuan Ekspor terhadap Kinerja Ekspor Minyak Atsiri Indonesia. Jurnal Ekonomi dan Pembangunan, 14(1), 100-115.

Susanto, F. (2017). Pengaruh Populasi Negara Mitra Dagang terhadap Ekspor Non-Migas Indonesia. Jurnal Ekonomi dan Demografi, 10(3), 78-93.

[WITS] World Integrated Trade Solution [dunduh September 2022]. Tersedia pada: http://wits.worldbank.org