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DEMAND ESTIMATION FOR INDONESIA’S RATTAN IN GERMANY : A Transcendental Logarithmic Function Analysis

Nofi Sugiyanto, Ching_Yang Lin, Ph.D.

2013 | Tesis | S2 Magister Ek.Pembangunan

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This study examines the demand for Indonesia’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 China’s rattan demand, while the others are influenced positively. In term of own-price, China’s, Singapore’s and Indonesia’s rattan are inelastic goods in which Indonesia’s rattan has the lowest value or close to zero. It implies that Indonesia’s rattan close to perfectly inelastic, while cross price elasticity shows that Malaysia’s rattan is complement goods of Indonesia’s rattan. Based on our policy analysis, the export of rattan raw materials is still giving economic profit for Indonesia.

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