| Summary: | This paper examines the Japanese import demand of Indonesian plywood
during period 1989-2011 using Transcendental Logarithmic model. Indonesian
plywood compared with three major plywood exporting countries (Malaysia, China
and New Zealand).
The result shows that the real expenditure has positive impact on the share of
each different countriesimport demand.The changing price of plywood has negative
impact on the share of each different countries demand. The low own-price elaticities
in Indonesian plywood price induced in decreases demand for plywood import from
Indonesia. Furthermore, Indonesian plywood specified as inelastic goods by ownprice
elasticity, more substitute goods in cross-price elasticity and normal goods in
income elasticity.
Based on the policy analysis, the simulation to give subsidy by15% in the
selling price of Indonesian plywood gives increases share of Indonesian plywood by
1.05%. Moreover, decrease 10% in price of China�s plywood give result that share of
Indonesia�s plywood decreasing by 0.46%.
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