The Analysis of Indonesia Maize Trade Position and Imported Maize Dependency Level In Domestic Market
Journal Title: Scholars Journal of Economics, Business and Management - Year 2017, Vol 4, Issue 8
Abstract
Abstract:This paper attempts to analyze local maize performance compare with imported maize and examine some factors influencing imported maize dependency in Indonesia. This research employed the TSI method to measure trade position for competitive advantage perspective, the IDR method to measure percentage of imported maize dependency for comparative advantage, and VECM method to examine factor affecting import dependency. Based on TSI result indicates that Indonesia maize has lower competitiveness rather than maize exporter countries in domestic market. Based on IDR result indicates that Indonesia has low dependency for imported maize (6% - 11%). Cropping area, world maize price, and exchange rate affect import dependency maize in Indonesia based on VECM analysis. However, it seems that Indonesian Government should be more oriented toward improving local maize based on domestic and international condition to compete with import maize and full fill domestic demand. Keywords:Maize, Import Competitiveness, TSI, IDR, VECM
Authors and Affiliations
Fransisca Esha Angela, Ke-Chung Peng, Suhartini .
Keywords
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