Competitiveness Analysis and Factors Affecting Indonesian Cinnamon Exports

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 t...

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Main Authors: Dini Rochdiani, Eliana Wulandari
Format: Article
Language:English
Published: MDPI AG 2023-02-01
Series:Economies
Subjects:
Online Access:https://www.mdpi.com/2227-7099/11/2/55
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author Dini Rochdiani
Eliana Wulandari
author_facet Dini Rochdiani
Eliana Wulandari
author_sort Dini Rochdiani
collection DOAJ
description 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.
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spelling doaj.art-b7020a5f0ac346ae8ba3bf742362dfca2023-11-16T20:07:37ZengMDPI AGEconomies2227-70992023-02-011125510.3390/economies11020055Competitiveness Analysis and Factors Affecting Indonesian Cinnamon ExportsDini Rochdiani0Eliana Wulandari1Department of Agricultural Social and Economics, Faculty of Agriculture, Universitas Padjadjaran, Sumedang 45363, IndonesiaDepartment of Agricultural Social and Economics, Faculty of Agriculture, Universitas Padjadjaran, Sumedang 45363, IndonesiaCinnamon 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.https://www.mdpi.com/2227-7099/11/2/55competitivenesscinnamonIndonesiarevealed comparative advantage
spellingShingle Dini Rochdiani
Eliana Wulandari
Competitiveness Analysis and Factors Affecting Indonesian Cinnamon Exports
Economies
competitiveness
cinnamon
Indonesia
revealed comparative advantage
title Competitiveness Analysis and Factors Affecting Indonesian Cinnamon Exports
title_full Competitiveness Analysis and Factors Affecting Indonesian Cinnamon Exports
title_fullStr Competitiveness Analysis and Factors Affecting Indonesian Cinnamon Exports
title_full_unstemmed Competitiveness Analysis and Factors Affecting Indonesian Cinnamon Exports
title_short Competitiveness Analysis and Factors Affecting Indonesian Cinnamon Exports
title_sort competitiveness analysis and factors affecting indonesian cinnamon exports
topic competitiveness
cinnamon
Indonesia
revealed comparative advantage
url https://www.mdpi.com/2227-7099/11/2/55
work_keys_str_mv AT dinirochdiani competitivenessanalysisandfactorsaffectingindonesiancinnamonexports
AT elianawulandari competitivenessanalysisandfactorsaffectingindonesiancinnamonexports