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

Authors

  • 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),

DOI:

https://doi.org//10.32628/IJSRSET196119

Keywords:

Coffee, Business Competitiveness, Price Transmission, Threshold

Abstract

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.

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International Journal of Scientific Research in Science, Engineering and Technology

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Published

2019-01-30

Issue

Volume 6, Issue 1, January-February-2019

Section

Research Articles

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How to Cite

[1]
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