COMPARATIVE ADVANTAGE IN AGRICULTURE SECTOR OF INDONESIA: AN ANALYSIS BY RCA
Free trade agreements in an open economy are designed to increase economic growth. The implementation of free trade causes significant change in policy implications for a national economy. Therefore, identifying comparative advantage in agriculture in order to compete in the world markets opened thr...
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| Format: | Thesis |
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[Yogyakarta] : Universitas Gadjah Mada
2013
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| _version_ | 1826045960721006592 |
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| author | , Tri Wahyu Cahyono , Professor Hiroshi Ohta |
| author_facet | , Tri Wahyu Cahyono , Professor Hiroshi Ohta |
| author_sort | , Tri Wahyu Cahyono |
| collection | UGM |
| description | Free trade agreements in an open economy are designed to increase economic growth. The implementation of free trade causes significant change in policy implications for a national economy. Therefore, identifying comparative advantage in agriculture in order to compete in the world markets opened through trade agreements is a key to ensure growth in the economic development of agriculture.
This research study uses revealed comparative advantage analysis to describe comparative advantage in agriculture sector of Indonesia. It uses Normalized Revealed Comparative Advantage (NRCA) index, products mapping and Normalized Location Quotients (NLQ) to show comparative advantage of agriculture. Four subsectors of agriculture i.e food crops, horticultures, plantation crops, and livestock are explained using the data of two main sources, UN-COMTRADE and Agricultural Statistic of Indonesia [CD].
The analysis shows that plantation crops are the main subsector of agriculture in Indonesia which gives a surplus trade balance. It has a positive trend of comparative advantage. It also supports the government policy that Sumatera becomes center of palm oil. Using NRCA and NLQ, we see that centralizing palm oil in Sumatera is a good decision.
Furthermore, the study can be used to formulate the planning and public policy implementation in Indonesia. Regarding comparative advantage theory, for example, if a country is better at palm oil production, the country should focus on this production and import the other goods which have comparative disadvantage from other countries. However, in terms of food security, a country is vulnerable if the domestic population depends upon global commodity exchange for its survival. |
| first_indexed | 2024-03-13T22:45:40Z |
| format | Thesis |
| id | oai:generic.eprints.org:118182 |
| institution | Universiti Gadjah Mada |
| last_indexed | 2024-03-13T22:45:40Z |
| publishDate | 2013 |
| publisher | [Yogyakarta] : Universitas Gadjah Mada |
| record_format | dspace |
| spelling | oai:generic.eprints.org:1181822016-03-04T08:44:04Z https://repository.ugm.ac.id/118182/ COMPARATIVE ADVANTAGE IN AGRICULTURE SECTOR OF INDONESIA: AN ANALYSIS BY RCA , Tri Wahyu Cahyono , Professor Hiroshi Ohta ETD Free trade agreements in an open economy are designed to increase economic growth. The implementation of free trade causes significant change in policy implications for a national economy. Therefore, identifying comparative advantage in agriculture in order to compete in the world markets opened through trade agreements is a key to ensure growth in the economic development of agriculture. This research study uses revealed comparative advantage analysis to describe comparative advantage in agriculture sector of Indonesia. It uses Normalized Revealed Comparative Advantage (NRCA) index, products mapping and Normalized Location Quotients (NLQ) to show comparative advantage of agriculture. Four subsectors of agriculture i.e food crops, horticultures, plantation crops, and livestock are explained using the data of two main sources, UN-COMTRADE and Agricultural Statistic of Indonesia [CD]. The analysis shows that plantation crops are the main subsector of agriculture in Indonesia which gives a surplus trade balance. It has a positive trend of comparative advantage. It also supports the government policy that Sumatera becomes center of palm oil. Using NRCA and NLQ, we see that centralizing palm oil in Sumatera is a good decision. Furthermore, the study can be used to formulate the planning and public policy implementation in Indonesia. Regarding comparative advantage theory, for example, if a country is better at palm oil production, the country should focus on this production and import the other goods which have comparative disadvantage from other countries. However, in terms of food security, a country is vulnerable if the domestic population depends upon global commodity exchange for its survival. [Yogyakarta] : Universitas Gadjah Mada 2013 Thesis NonPeerReviewed , Tri Wahyu Cahyono and , Professor Hiroshi Ohta (2013) COMPARATIVE ADVANTAGE IN AGRICULTURE SECTOR OF INDONESIA: AN ANALYSIS BY RCA. UNSPECIFIED thesis, UNSPECIFIED. http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=57968 |
| spellingShingle | ETD , Tri Wahyu Cahyono , Professor Hiroshi Ohta COMPARATIVE ADVANTAGE IN AGRICULTURE SECTOR OF INDONESIA: AN ANALYSIS BY RCA |
| title | COMPARATIVE ADVANTAGE IN AGRICULTURE SECTOR OF INDONESIA: AN ANALYSIS BY RCA |
| title_full | COMPARATIVE ADVANTAGE IN AGRICULTURE SECTOR OF INDONESIA: AN ANALYSIS BY RCA |
| title_fullStr | COMPARATIVE ADVANTAGE IN AGRICULTURE SECTOR OF INDONESIA: AN ANALYSIS BY RCA |
| title_full_unstemmed | COMPARATIVE ADVANTAGE IN AGRICULTURE SECTOR OF INDONESIA: AN ANALYSIS BY RCA |
| title_short | COMPARATIVE ADVANTAGE IN AGRICULTURE SECTOR OF INDONESIA: AN ANALYSIS BY RCA |
| title_sort | comparative advantage in agriculture sector of indonesia an analysis by rca |
| topic | ETD |
| work_keys_str_mv | AT triwahyucahyono comparativeadvantageinagriculturesectorofindonesiaananalysisbyrca AT professorhiroshiohta comparativeadvantageinagriculturesectorofindonesiaananalysisbyrca |