Competitiveness Analysis and Factors Affecting Indonesian Banana Exports in the Destination Country
Journal: THE INTERNATIONAL JOURNAL OF BUSINESS MANAGEMENT AND TECHNOLOGY (Vol.6, No. 6)Publication Date: 2022-12-30
Authors : Felix Nola Eko Priyanto Syarif Imam Hidayat;
Page : 08-25
Keywords : Banana Export; Competitiveness; Export Product Dynamic; Gravity Model; Revealed Comparative Advantage;
Abstract
Bananas from Indonesia are a top product with export potential for tropical fruits. Banana agriculture in Indonesia is dominated by local market production, whereas professional plantations are on a small scale. Traditional banana farming will result in variable banana quality, less guaranteed quality, and less probable continuity due to the inefficiency of the cultivation system. This research aims to examine the level of competitiveness of Indonesian banana exports in destination countries and the factors that influence Indonesian banana exports in destination nations. This quantitative study employs Revealed Comparative Advantage (RCA), Export Product Dynamic (EPD), and the gravity model. The study concluded that Indonesian bananas are competitive in various countries, including Malaysia, the United Arab Emirates, and Kuwait. In contrast, the competitiveness of Indonesian bananas in several other nations, including China, Singapore, and Japan, remains relatively low. Several factors are known to influence Indonesian banana exports to destination nations, including the low quality of bananas, the discontinuity of exports, and the real GDP per capita of export destination countries.
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