Analysis of Export Determinants and Competitiveness of Indonesian Vanilla in the Period 2008-2019

Export is an essential activity in national growth. Although vanilla is one of the competitive Indonesian export commodities, the export working performance of Indonesian vanilla is decreasing in few years. The cautions are both internal factors, i.e. the decrease of production and land area, and external factors, i.e. incapability to compete on quality with vanilla from the other countries. The research aims to analyze the export determinants and competitiveness level of Indonesian vanilla in the period 2008-2019. The Revealed Competitive Advantage (RCA) was applied for analyzing the competitiveness. Meanwhile, data panel regression was used for analyzing the export determinants of vanilla. The research result reveals the competitiveness of Indonesian vanilla is lower than Madagascar vanilla. The determinant variables of the vanilla export volume are domestic production, domestic consumption, and Growth Domestic Product (GDP). The strategies which should be conducted to enhance the competitiveness of vanilla are the adoption of knowledge and technology for increasing the quality and quantity of Indonesian vanilla, the value-added product development, and the marketing management improvement.