ANALYSIS OF THE DETERMINANT FACTORS OF INDONESIAN TROPICAL TIMBER EXPORT USING GRAVITY MODEL APPROACH

The wealth of Indonesian forest resources in the form of tropical wood is utilized to support the country’s foreign exchange income. The biggest export destination countries are China, Japan, the United States, South Korea, and Australia. Panel data during the 2003 to 2017 observation period of the...

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Main Authors: Rahmah A.E., Usman M., Nugroho A., Pospos T.H.
Format: Article
Language:English
Published: iVolga Press 2020-05-01
Series:Russian Journal of Agricultural and Socio-Economic Sciences
Subjects:
Online Access:https://rjoas.com/issue-2020-05/article_14.pdf
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author Rahmah A.E.
Usman M.
Nugroho A.
Pospos T.H.
author_facet Rahmah A.E.
Usman M.
Nugroho A.
Pospos T.H.
author_sort Rahmah A.E.
collection DOAJ
description The wealth of Indonesian forest resources in the form of tropical wood is utilized to support the country’s foreign exchange income. The biggest export destination countries are China, Japan, the United States, South Korea, and Australia. Panel data during the 2003 to 2017 observation period of the five export destination countries were used. There are differences in the value of exports to each country influenced by several determinant factors, namely the GDP of the exporter, the importer of the GDP, the exporter population, the population of the importer, the exchange rate, and the distance of the exporting country to the importer country. This study aims to figure out the effect of determinants on the value of tropical timber exports using the Gravity Model approach. The results of the analysis show that the variables of exporter GDP, importer GDP, and the exchange rate have a significant positive effect. The exporter population variable and distance have a significant negative impact, while the importer’s population variable is insignificantly negative. The slopes and the constants from the largest to the smallest are the exchange rate, exporter GDP, importer GDP, distance, exporter population, and importer population.
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spelling doaj.art-eb81dc10ab734b54a4fae50f5e0fe7772023-09-02T23:20:28ZengiVolga PressRussian Journal of Agricultural and Socio-Economic Sciences2226-11842020-05-01101513214210.18551/rjoas.2020-05.14ANALYSIS OF THE DETERMINANT FACTORS OF INDONESIAN TROPICAL TIMBER EXPORT USING GRAVITY MODEL APPROACHRahmah A.E.0Usman M.1Nugroho A.2Pospos T.H.3Master’s Program of Agribusiness, Faculty of Agriculture, Syiah Kuala UniversityMaster’s Program of Agribusiness, Faculty of Agriculture, Syiah Kuala UniversityMaster’s Program of Agribusiness, Faculty of Agriculture, Syiah Kuala UniversityMaster’s Program of Agribusiness, Faculty of Agriculture, Syiah Kuala UniversityThe wealth of Indonesian forest resources in the form of tropical wood is utilized to support the country’s foreign exchange income. The biggest export destination countries are China, Japan, the United States, South Korea, and Australia. Panel data during the 2003 to 2017 observation period of the five export destination countries were used. There are differences in the value of exports to each country influenced by several determinant factors, namely the GDP of the exporter, the importer of the GDP, the exporter population, the population of the importer, the exchange rate, and the distance of the exporting country to the importer country. This study aims to figure out the effect of determinants on the value of tropical timber exports using the Gravity Model approach. The results of the analysis show that the variables of exporter GDP, importer GDP, and the exchange rate have a significant positive effect. The exporter population variable and distance have a significant negative impact, while the importer’s population variable is insignificantly negative. The slopes and the constants from the largest to the smallest are the exchange rate, exporter GDP, importer GDP, distance, exporter population, and importer population.https://rjoas.com/issue-2020-05/article_14.pdfexport tradetropical timberpanel datadeterminant factorsgravity model
spellingShingle Rahmah A.E.
Usman M.
Nugroho A.
Pospos T.H.
ANALYSIS OF THE DETERMINANT FACTORS OF INDONESIAN TROPICAL TIMBER EXPORT USING GRAVITY MODEL APPROACH
Russian Journal of Agricultural and Socio-Economic Sciences
export trade
tropical timber
panel data
determinant factors
gravity model
title ANALYSIS OF THE DETERMINANT FACTORS OF INDONESIAN TROPICAL TIMBER EXPORT USING GRAVITY MODEL APPROACH
title_full ANALYSIS OF THE DETERMINANT FACTORS OF INDONESIAN TROPICAL TIMBER EXPORT USING GRAVITY MODEL APPROACH
title_fullStr ANALYSIS OF THE DETERMINANT FACTORS OF INDONESIAN TROPICAL TIMBER EXPORT USING GRAVITY MODEL APPROACH
title_full_unstemmed ANALYSIS OF THE DETERMINANT FACTORS OF INDONESIAN TROPICAL TIMBER EXPORT USING GRAVITY MODEL APPROACH
title_short ANALYSIS OF THE DETERMINANT FACTORS OF INDONESIAN TROPICAL TIMBER EXPORT USING GRAVITY MODEL APPROACH
title_sort analysis of the determinant factors of indonesian tropical timber export using gravity model approach
topic export trade
tropical timber
panel data
determinant factors
gravity model
url https://rjoas.com/issue-2020-05/article_14.pdf
work_keys_str_mv AT rahmahae analysisofthedeterminantfactorsofindonesiantropicaltimberexportusinggravitymodelapproach
AT usmanm analysisofthedeterminantfactorsofindonesiantropicaltimberexportusinggravitymodelapproach
AT nugrohoa analysisofthedeterminantfactorsofindonesiantropicaltimberexportusinggravitymodelapproach
AT posposth analysisofthedeterminantfactorsofindonesiantropicaltimberexportusinggravitymodelapproach