Abstract
This study purpose to analyze competitiveness and the factors that influence the level of Indonesian potato exports in Singapore and Malaysia. The analytical method used in this study is the quantitative Revealed Comparative Advantage (RCA) method, Export Product Dynamic (EPD), and OLS analysis. The destination countries for potato exports in Indonesia are Singapore and Malaysia. This study uses annual time series data from 1989 to 2018. The results of the RCA analysis show that Indonesian potatoes have strong competitiveness in Singapore in 1999-2017, although in 1999-2003 the value of Singapore RCA was inferior to Malaysia. Whereas in Malaysia, Indonesian potatoes have strong competitiveness only in 1999-2006. The results of analysis of Indonesian potato EPD on the Singapore market are in a retreat position and Malaysia is in a lost opportunity position. The results of OLS analysis in both countries show that the variable that has a significant effect on the level of potato exports is the GDP of the destination country and the real exchange rate. While the price of exports only affects Singapore. This study purpose to analyze competitiveness and the factors that influence the level of Indonesian potato exports in Singapore and Malaysia. The analytical method used in this study is the quantitative Revealed Comparative Advantage (RCA) method, Export Product Dynamic (EPD), and OLS analysis. The destination countries for potato exports in Indonesia are Singapore and Malaysia. This study uses annual time series data from 1989 to 2018. The results of the RCA analysis show that Indonesian potatoes have strong competitiveness in Singapore in 1999-2017, although in 1999-2003 the value of Singapore RCA was inferior to Malaysia. Whereas in Malaysia, Indonesian potatoes have strong competitiveness only in 1999-2006. The results of analysis of Indonesian potato EPD on the Singapore market are in a retreat position and Malaysia is in a lost opportunity position. The results of OLS analysis in both countries show that the variable that has a significant effect on the level of potato exports is the GDP of the destination country and the real exchange rate. While the price of exports only affects Singapore.
Highlights
This study purpose to analyze competitiveness and the factors that influence the level of Indonesian potato exports in Singapore and Malaysia
From 2007 to 2017 Indonesian potatoes no longer had a comparative advantage over the Malaysian market, because at that time the potato commodity in the Malaysian market was controlled by China so that the competitiveness of Chinese potatoes was better than Indonesian potatoes and Indonesian potatoes every year from 1999 - 2017 only has strong power in the Singapore market
Based on the results of the Export Product Dynamic (EPD) calculations and estimates in, the Indonesian potato market in Singapore is in the “Retreat” position even though Singapore has strong competitiveness based on the calculation of the Revealed Comparative Advantage (RCA) method
Summary
This study purpose to analyze competitiveness and the factors that influence the level of Indonesian potato exports in Singapore and Malaysia. The destination countries for potato exports in Indonesia are Singapore and Malaysia. The results of analysis of Indonesian potato EPD on the Singapore market are in a retreat position and Malaysia is in a lost opportunity position. The theory of absolute advantage Indonesia is divided into several sub-secput forward by Adam Smith, argues that tors, including the sub-sector of food crops, each country will benefit or benefit from horticulture and plantation crops (Hoang, international trade, because each country 2020). Horticulture is one of the sub-secwill specialize in production and carry out tors that has an important role in agriculgoods export activities if the country has tural development and national economic an absolute advantage, as well as import development. The horticulture sub-sector goods if the country does not have abso- in Indonesia is divided into four groups, lute advantage (Rundassa et al, 2019). namely fruit crops, vegetable crops, bio-
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