Demand Estimation For Indonesia's Rattan In Germany: A Transcendental Logarithmic Function Analysis
SUGIYANTO, NOFI (Adv.: Ching-Yang Lin, Ph.D.), Ching-Yang Lin, Ph.D.
This study examines the demand for IndonesiaÂ’s rattan in Germany from 1991-2008 by using Transcendental Logarithmic as a tool. Germany is chosen since it is the potential market of rattan, especially in Europe and it can be considered as a competitive market. The results revealed that the nominal expenditure affects negatively to share of ChinaÂ’s rattan demand, while the others are influenced
positively. In term of own-price, ChinaÂ’s, SingaporeÂ’s and IndonesiaÂ’s rattan are inelastic goods in which IndonesiaÂ’s rattan has the lowest value or close to zero. It implies that IndonesiaÂ’s rattan close to perfectly inelastic, while cross price elasticity shows that MalaysiaÂ’s rattan is complement goods of IndonesiaÂ’s rattan. Based on our policy analysis, the export of rattan raw materials is still giving economic profit for Indonesia.
Kata Kunci : demand, rattan, transcendental logarithmic.
