Analysis of Competitiveness and Threshold Price Transmission of Indonesian Coffee in Importing Countries

Authors(3) :-Sulistyo Hadi, Dedi Budiman Hakim, Tanti Novianti

Coffee is a leading commodity export in Indonesia and contributes greatly to the national coffee exports. Indonesia is the world's fourth largest exporter. The objectives of this study are investigating business competitiveness of Indonesian coffee compared to the other of coffee exporting countries and threshold price transmission in importing countries uses Constant Market Share Analysis (CMSA) and ECM models , and threshold cointegration . The results concluded that the most influencing business competitiveness was the effect of market distribution, threshold price transmission of Indonesian coffee in importing markets, the United States amounting to 0.9, Germany at -0.6, Japan at 0.5, Italy at 0.2, and Malaysia at -0.4. This means that when the coffee price of deviation in importing countries and Indonesia in its long-term balance exceeds its threshold value, coffee prices in importers countries will adjust to achieve their balance so that both coffee prices are in the Indonesian market and the markets of countries importers have a cointegration relationship.

Authors and Affiliations

Sulistyo Hadi
Department of Economics, Faculty of Economics and Management, Bogor Agricultural University (FEM IPB), Bogor Indonesia
Dedi Budiman Hakim
Department of Economics, Faculty of Economics and Management, Bogor Agricultural University (FEM IPB),
Tanti Novianti
Department of Economics, Faculty of Economics and Management, Bogor Agricultural University (FEM IPB),

Coffee, Business Competitiveness, Price Transmission, Threshold

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Publication Details

Published in : Volume 6 | Issue 1 | January-February 2019
Date of Publication : 2019-01-30
License:  This work is licensed under a Creative Commons Attribution 4.0 International License.
Page(s) : 51-62
Manuscript Number : IJSRSET196119
Publisher : Technoscience Academy

Print ISSN : 2395-1990, Online ISSN : 2394-4099

Cite This Article :

Sulistyo Hadi, Dedi Budiman Hakim, Tanti Novianti, " Analysis of Competitiveness and Threshold Price Transmission of Indonesian Coffee in Importing Countries, International Journal of Scientific Research in Science, Engineering and Technology(IJSRSET), Print ISSN : 2395-1990, Online ISSN : 2394-4099, Volume 6, Issue 1, pp.51-62, January-February-2019. Available at doi : https://doi.org/10.32628/IJSRSET196119
Journal URL : http://ijsrset.com/IJSRSET196119

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