IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6239-709-5_41.html

Comparative and Competitive Advantages in Coffee Exports: Examining the Role of FDI and Exchange Rates

Author

Listed:
  • Akbar Mandela A. Yunus

    (Hasanuddin University)

  • Munawar Ismail

    (Universitas Brawijaya)

  • Putu Mahardika Adi Saputra

    (Universitas Brawijaya)

  • Setyo Tri Wahyudi

    (Universitas Brawijaya)

Abstract

This study examines the effects of foreign direct investment (FDI) inflows and real exchange rates on the quantity of coffee exports, while explicitly accounting for the roles of comparative and competitive advantages. Using annual data for Brazil, Vietnam, Colombia, Indonesia and India over the period 2009–2019, we estimate a panel path analysis model within a structural equation modelling framework. Comparative advantage is measured using the normalised revealed comparative advantage index, and competitive advantage is proxied by differences in export price indices. The empirical results show that FDI inflows have a positive and statistically significant direct effect on coffee export quantity, confirming their role in strengthening export capacity through technology, capital and market access. However, FDI exerts a significant negative indirect effect on exports through comparative advantage, while the indirect effect through competitive advantage is not significant. The real exchange rate has a negative and significant direct impact on coffee exports, indicating that exchange rate depreciation is associated with lower export volumes in the coffee sector, whereas its indirect effects through comparative and competitive advantages are not significant. Overall, the findings highlight the importance of jointly considering international capital flows, exchange rate movements and structural trade advantages when formulating policies to enhance coffee export performance in major producing countries.

Suggested Citation

  • Akbar Mandela A. Yunus & Munawar Ismail & Putu Mahardika Adi Saputra & Setyo Tri Wahyudi, 2026. "Comparative and Competitive Advantages in Coffee Exports: Examining the Role of FDI and Exchange Rates," Advances in Economics, Business and Management Research,, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-709-5_41
    DOI: 10.2991/978-94-6239-709-5_41
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:advbcp:978-94-6239-709-5_41. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.