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Diamond Model and Competition of Rubber Export Markets: Evidence from Sumatra Economic Growth Center

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  • Ansonfino, Ansofino
  • Zusmelia, Zusmelia
  • Dahen, Lovelly Dwinda
  • Puteri, Yossi Eka

Abstract

The focus of this research is on how the position of competitiveness of Indonesian rubber exports among ASEAN countries and the dominant factors causing the competitiveness of Indonesian rubber exports experienced a downward. Approach to measuring rubber export competitiveness uses the Lafay Index, and factors that affect the competitiveness using the Diamond model by using panel data analysis method. The results show that there has been a decline in the competitiveness of Indonesia's rubber exports to ASEAN countries, the greatest decline in competitiveness that occurred in Singapore, Malaysia, and Thailand. Factors that affect Indonesia's export competitiveness that is more dominant are a foreign direct investment, price levels, and interest rates. FDI should be directed at improving the quality of export products following the quality of ISNR and upgrading the quality of rubber export products from SIT 20, and directly more beneficial for the manufacture of goods for final consumers.

Suggested Citation

  • Ansonfino, Ansofino & Zusmelia, Zusmelia & Dahen, Lovelly Dwinda & Puteri, Yossi Eka, . "Diamond Model and Competition of Rubber Export Markets: Evidence from Sumatra Economic Growth Center," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 13(01).
    • Handle: RePEc:ags:aolpei:320245
    DOI: 10.22004/ag.econ.320245
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    1. Edward B. Barbier & Johnson Gwatipedza & Duncan Knowler & Sarah H. Reichard, 2011. "The North American horticultural industry and the risk of plant invasion," Agricultural Economics, International Association of Agricultural Economists, vol. 42, pages 113-130, November.
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    1. repec:ags:aolpei:337996 is not listed on IDEAS
    2. 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.

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