Analysis of Indonesian tea competitiveness in the international market

Nugrahaningrum, Yessica; Zakaria, Roni; Fahma, Fakhrina

doi:10.1063/5.0000810

Cited by 4 publications

(6 citation statements)

References 3 publications

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“…Trade Specialization Ratio (TSR) analysis revealed the tendency of Indonesia as the exporter for Southeast Asia countries, on the export expansion stage. This finding was parallel with a study conducted by Nugrahaningrum et al (2020). They also discovered that Indonesia tended to be the tea exporter on the growth or export expansion stage.…”

Section: Results and Discussion Indonesian Tea Competitiveness In Sou...supporting

confidence: 82%

Competitiveness of Indonesian Tea Export in Southeast Asia Markets

Nursodik

Santoso²,

Nurfadillah³

2022

SOCA

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Tea is a popular export commodity from Indonesia. It has been exported worldwide, especially to Southeast Asia countries. However, the popularity of the tea export market attracts export competitors, which in turn served a strenuous chance to win in the market. The objective of the study was to analyze the competitiveness and factors that affected the exported Indonesian tea in Southeast Asia Market. The data analysis method applied was the Revealed Comparative Advantage (RCA), Trade Specialization Ratio (TSR), and data panel regression (Fixed-Effect Model). Findings showed that exported Indonesian tea had a strong level of comparative competitiveness. Analysis revealed that Indonesia tended to be a tea exporter on the export expansion stage. The real GDP of the countries of destination, exported tea price, the population of the countries of destination, and RCA index had delivered significant influence for the exported volume of Indonesian tea to the Southeast Asia countries.

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Section: Results and Discussion Indonesian Tea Competitiveness In Sou...supporting

confidence: 82%

Competitiveness of Indonesian Tea Export in Southeast Asia Markets

Nursodik

Santoso²,

Nurfadillah³

2022

SOCA

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“…The promotional activities include a Darjeeling charity auction, attendance at major trade events, tea seminar and contests, publicity through social media, print media and websites, and a patronage programme (Navitha and Sethurajan, 2018). This result is in line with the findings of Nugrahaningrum et al (2020), who have explored the strong position of Indonesian tea in the world market.…”

Section: Nexus Between Tea Export and Economic Growthsupporting

confidence: 92%

“…In this same manner, tea, being one of the most significant agricultural export items, has attracted the attention of researchers who have begun to shed light on its international competitiveness in the context of different regions. The study of Nugrahaningrum et al (2020), adopting Trade Specialization Index (ISP), RCA, CMS and Diamond Porter Theory confirmed that Indonesian tea has strong competitiveness in the international market. Jin (2019) attempted to measure the competitiveness of Chinese tea export in comparison to other major tea exporting countries.…”

Section: Export Competitiveness Of Tea and Other Agricultural Productsmentioning

confidence: 93%

Tea export competitiveness and the nexus between tea export and economic growth: The cases of Bangladesh, India and Sri Lanka

Islam¹,

Ema²,

Chakrobortty³

et al. 2021

Stud. Agr. Econ.

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Tea export competitiveness and the nexus between tea export and economic growth: The cases of Bangladesh, India and Sri Lanka Long since the end of the British India regime, Bangladesh, India, and Sri Lanka have produced a signifi cant volume of tea which continues to bring them invaluable foreign currency earnings through exports. Our paper explores the tea export competitiveness of these countries by employing the Revealed Symmetric Comparative Advantage (RSCA) index, and analyses the nexus between tea export and economic growth over the period from 1980 to 2018 using several dynamic econometric approaches. Results suggest that Bangladesh has lost its tea export competitiveness over the last decade. India posted moderate performance, while Sri Lanka consistently kept its dominant position. Further, the Johansen Cointegration test outcomes report no long-run relationship between tea export and economic growth across all the countries. The Granger Causality outcomes illustrate that only in Sri Lanka is it the case that tea export causes short-run economic growth. Lastly, the impulse response function projects tea export and economic growth, taking into consideration the response of each to a shock from the other. Extrapolation from the results indicate that, in contrast to the cases of Bangladesh and India (where no direct relationship was found), tea export and economic growth are intimately interconnected in Sri Lanka. This article further recommends eff ective policies so that economic growth in these countries can remain steady and that their tea industries can thrive.

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“…This amount of Indonesian tea production is sufficient for domestic needs so that Indonesia does not have a dependence on tea imports and can be proven by the Import Dependency Ratio which is in the range of 0 to 16 percent (Ramadhani, 2013). Based on the Trade Specialization Index (TSI) analysis, it is also known that the position of Indonesian tea exports in the international market is in the export expansion stage with the TSI value in the range of 0-0.8 (Nugrahaningrum et al, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

“…With an average RCA value of 6.79 in the period 1979 to 2010, Indonesian tea competitiveness is considered quite strong in international trade (Ramadhani, 2013). Then in the 2010-2016 period, Indonesian tea exports were still considered competitive even though the RCA value decreased to 2.32 (Nugrahaningrum et al, 2020). In the ASEAN market, Indonesian tea also has strong competitiveness with an RCA value of 2.89 (Satryana & Karmini, 2016).…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of Competitiveness and Forecasting of Indonesian Tea Exports to Main Destination Countries

Zuhdi

Rambe

Rahmadona

2022

mem

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<p>Indonesia as a tea exporter in the world has not maximized tea export opportunities as indicated by the decline in the value of tea exports from 2016 to 2020. This study aims to further analyze the competitiveness of Indonesian tea exports to major importing countries and predict the value of exports that will occur until 2025. This study used time series data from 2001-2020 which was analyzed with Revealed Comparative Advantage (RCA) and Autoregressive Integrated Moving Average (ARIMA). The results of the analysis show that the competitiveness of Indonesian tea exports to the main destination countries, namely Russia, Malaysia, China, Taiwan, and the United States, does not have a comparative advantage (RCA<1). However, based on forecasting results, the value of tea exports to Russia, Malaysia, and China is expected to increase until 2025. This increase in tea export value also has an impact in the form of strengthening the competitiveness of Indonesian tea exports in these countries even though the RCA index value is smaller than one. Thus, although the competitiveness of Indonesian tea exports is still weak in destination countries, Indonesia can optimize tea exports to countries that have increased competitiveness, such as Russia, Malaysia, and China.</p>

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Analysis of Indonesian tea competitiveness in the international market

Cited by 4 publications

References 3 publications

Competitiveness of Indonesian Tea Export in Southeast Asia Markets

Competitiveness of Indonesian Tea Export in Southeast Asia Markets

Tea export competitiveness and the nexus between tea export and economic growth: The cases of Bangladesh, India and Sri Lanka

Analysis of Competitiveness and Forecasting of Indonesian Tea Exports to Main Destination Countries

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