Factors Influence Tea Exports in North Sumatera Province

Abstract

- The province of North SumatEra has a leading commodity tea that shows the role in international trade activities through exports to several countries in the world. This study aims to analyze the effect of production, GDP of destination country, population of destination country, and exchange rate against dollar against tea export of North Sumatera. The type of this research is quantitative analysis using time series data from 2006 to 2015 from 10 export destination countries, namely Malaysia, United States, United Kingdom, Taiwan, Germany, Singapore, Pakistan, Emirates Arab, Canada and Russia. Data obtained from Central Bureau of Statistics (BPS) of North Sumatra Province and World Bank. Data analysis technique used is panel data regression with Fixed Effect Model (FEM) model. The results showed that production and GDP had positive and significant effect, the number of population had negative and significant effect, while the exchange rate did not significantly influence the tea export of North Sumatera.