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Competitiveness Analyses Of Indonesian And Malaysian Palm Oil Exports

Author

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  • Tri Nugraha Ramadhani(
  • Rokhedi Priyo Santoso

Abstract

This study investigates the competitiveness of Indonesian and Malaysian palm oil export with special focus on five major importing countries, namely China, Singapore, India, Pakistan, and Netherlands, from 2001 to 2014. The methods used are Revealed Comparative Advantage (RCA), Revealed Symmetric Comparative Advantage (RSCA) and Constant Market Share (CMS). Findings/Originality: The RCA and RSCA calculations show that Indonesia and Malaysia have positive indices. Yet, Indonesia's RCA and RSCA indices from 2001 to 2014 are higher than those of Malaysia. It demonstrates that Indonesia's palm oil is more competitive than that of Malaysia. Based on CMS calculation, the findings show the following. Firstly, palm oil commodity is influenced by high demand from 2001 to 2014 in five major importing countries. Secondly, both countries have concentrated on the export commodity whose markets have been growing relatively fast. Thirdly, Indonesia's palm oil commodity experiences rapid growth in the selected markets while Malaysia experiences stagnant growth. Overall, Indonesia's palm oil competitiveness is higher than that of Malaysia in five major importing countries.

Suggested Citation

  • Tri Nugraha Ramadhani( & Rokhedi Priyo Santoso, 2019. "Competitiveness Analyses Of Indonesian And Malaysian Palm Oil Exports," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 11(1), pages 46-58, April.
  • Handle: RePEc:uii:journl:v:11:y:2019:i:1:p:46-58
    DOI: 10.20885/ejem.vol11.iss1.art5
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    Citations

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    Cited by:

    1. Norhana Abdul Majid & Zaimah Ramli & Sarmila Md Sum & Abd Hair Awang, 2021. "Sustainable Palm Oil Certification Scheme Frameworks and Impacts: A Systematic Literature Review," Sustainability, MDPI, vol. 13(6), pages 1-10, March.
    2. Arivintharan Chalvantharan & Chun Hsion Lim & Denny K. S. Ng, 2023. "Economic Feasibility and Water Footprint Analysis for Smart Irrigation Systems in Palm Oil Industry," Sustainability, MDPI, vol. 15(10), pages 1-14, May.
    3. Ariodillah Hidayat & Bernadette Robiani & Taufiq Marwa & Suhel Suhel, 2023. "Competitiveness, Market Structure, and Energy Policies: A Case Study of the World s Largest Crude Palm Oil Exporter," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 111-121, May.
    4. Asante, Kofi Takyi, 2023. "The politics of policy failure in Ghana: The case of oil palm," World Development Perspectives, Elsevier, vol. 31(C).

    More about this item

    Keywords

    RCA; RSCA; CMS; competitiveness; palm oil;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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