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Competitiveness, Market Structure, and Energy Policies: A Case Study of the World s Largest Crude Palm Oil Exporter

Author

Listed:
  • Ariodillah Hidayat

    (Department of Economic and Development, Faculty of Economics, Sriwijaya University, Indonesia.)

  • Bernadette Robiani

    (Department of Economic and Development, Faculty of Economics, Sriwijaya University, Indonesia.)

  • Taufiq Marwa

    (Department of Economic and Development, Faculty of Economics, Sriwijaya University, Indonesia.)

  • Suhel Suhel

    (Department of Economic and Development, Faculty of Economics, Sriwijaya University, Indonesia.)

Abstract

Crude Palm Oil (CPO) is the mainstay of Indonesian agricultural products which is the largest CPO producing country in the world. The high market share of Indonesian CPO exports reflects the high competitiveness of Indonesian CPO in the global market. The purpose of this study is to determine the competitiveness of Indonesian CPO, the concentration of the Indonesian CPO industry, and analyze the factors that are suspected to affect the competitiveness of the CPO industry in Indonesia. The data used in this study are secondary data with a five-digit ISIC (10432) using time series data for 2001-2020 and the analytical techniques used in this study include Revealed Competitive Advantage (RCA), Gini Coefficient, and Error Correction Model (ECM). The results showed that Indonesian CPO has high competitiveness in the international market, the Indonesian CPO industry is not concentrated, in the short term the variables that affect competitiveness are CPO prices, subsidized solar prices policy, and industrial concentrations, while in the long term the influential variables are biodiesel policy, subsidized diesel oil policy and industrial concentration

Suggested Citation

  • 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.
    • Handle: RePEc:eco:journ2:2023-03-14
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    More about this item

    Keywords

    Crude Palm Oil; competitiveness; Biodiesel; Subsidy; Energy Industry;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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