Economic Journal of Emerging Markets
Volume 8 Issue 2, 2016

Elasticity and competitiveness of Indonesia’s palm oil export in India market

Awan Setya Dewanta (Department of Economics, Universitas Islam Indonesia, Yogyakarta, Indonesia)
Riza Noer Arfani (Graduate School of International Relations, Ritsumeikan University, Kyoto, Japan)
Erfita Erfita (Department of Economics, Universitas Islam Indonesia, Yogyakarta, Indonesia)

Article Info

Publish Date
01 Oct 2016

Abstract

This study examines the elasticity and competitiveness of Indonsia’s palm oil export in the India market, 1990 -2014. The methods used are Error Correction Model (ECM) and Revealed Comparative Advantage (RCA) approach. The results shows that the price is inelastic in short-term but it is elastic in long-term. The income and exchange rate are elastic in the long-term. There is also a decline in competitiveness in the market India. These findings also demonstrate that palm oil is normal goods and can be easily substituted with the same products of other countries or other vegetable oils. It threatens the Indonesian palm oil competitiveness in the Indian market.

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Journal Info
Economic Journal of Emerging Markets
Website

Abbrev

JEP

Publisher

Universitas Islam Indonesia

Subject

Economics, Econometrics & Finance

Description

The Economic Journal of Emerging Markets (EJEM) is a peer-reviewed journal which provides a forum for scientific works pertaining to emerging market economies. Published every April and October, this journal welcomes original research papers on all aspects of economic development issues. The journal ...