The Global competitiveness of Indonesian forest product 1997-2006

IRAWAN, Nanang, Prof. Zafrul Q. Siddique

2010 | Tesis | S2 Magister Ekonomika Pembangunan

This study uses Balassa Index, Trade Competitiveness Index and gravity model to investigate the competitiveness of Indonesian forest products in international market from 1997 to 2006. Given the intensification of global competition, it is important to assess the present status, competitiveness and determinant of Indonesian forest product exports. Based on Balassa Index and Trade Competitiveness Index, it can be concluded that Indonesia still has comparative advantage in plywood, even though the trends are decline. The result of gravity model suggests that price of commodity and log export ban policy do not affect the commodity export. Indonesian plywood exports are shown to be necessities goods. Due to rises in Indonesian currency against other major currency, transportation cost, and endowment forest of trading partner countries, Indonesian plywood exports may decrease. Keywords: Indonesian forest products, revealed comparative advantage, trade competitiveness, and Gravity model.

Kata Kunci : Indonesian forest products,Revealed comparative advantage,Trade competitivenes