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The Analysis of Affecting Factors to the Export of Rattan Furniture Indonesia in the International Market

Journal: International Journal of Science and Research (IJSR) (Vol.5, No. 10)

Publication Date:

Authors : ; ;

Page : 1514-1519

Keywords : Export; Rattan Furniture; Gravity Model; Potential Trade;

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Rattan is among the leading commodities to Indonesia for almost 80% of the world's rattan filled by Indonesia. Furniture discussed here are the type of HS 940151 (Seat Of Rattan) and HS 940381 (Furniture Of Rattan). Applicability of government policy in 2011 by decree of the Minister of commerce 35 / M-DAG / PER / 11/2011, which contains about banning the export of raw rattan is expected to grow back the furniture industry had dimmed in the years before the enactment of the policy, so it is necessary analysis related which factors that give effect at rattan furniture trade. This research use approach of Gravity model and ratio of potential trade to know which countries can be expand for export. Factors that affect the export for HS 940151 are GDP per capita importer, GDP per capita Indonesia, economic distance, real exchange rate, price, and government policy. And then factors that affect the export for HS 940381 are GDP per capita importer, GDP per capita Indonesia, economic distance, and price. The potential countries to expand trade HS 940151 are Japan, Netherland, and Belgium. And for HS 940381 the potential countries are all countries in this research.

Last modified: 2021-07-01 14:45:37