On the Priorities of Indonesia’s Agricultural Trade: Which Product-Market Combinations Are Economically the Best?

Authors

  • Dadang Hermawan Institut Teknologi Dan Bisnis STIKOM Bali, Indonesia.
  • Yannes Martinus Pasaribu Faculty of Art and Design, Institute of Technology Bandung, West Java, Indonesia.
  • Iskandar Muda Department of Doctoral Program, Faculty Economic and Business Universitas Sumatera Utara, Medan, Indonesia.
  • Saidaxmat Abdunazarov Department of Economics and Management, Jizzak Polytechnic Institute, Jizzakh, Uzbekistan.
  • Herie Saksono Senior Researcher, Research and Development Agency of the Ministry of Home Affairs of the Republic of Indonesia.
  • Ravil Akhmadeev Associate Professor, Department of Finance and Prices, Plekhanov Russian University of Economics, Russian Federation
  • Forqan Ali Hussein Al-Khafaji Department of Media, Al-Mustaqbal University College, Iraq.
  • Ahmed Hussien Alawadi The Islamic University, Najaf, Iraq.

Keywords:

comparative advantage, exports, agricultural products, Indonesia

Abstract

This study aims to identify the best combination of product and market in the context of Indonesian agriculture using the newly developed measure of comparative advantage. The study focuses on a sample of Asian (Middle, East, and West) markets. Required data is collected from the Food and Agriculture Organization of the United Nations. This paper contributes to relevant Southeast Asian literature by applying a productivity-based comparative advantage index to determine the best product-market combination. Main findings reveal that in the Middle Asia market, palm oil is the only product of export priority. In the East Asia market, we found such advantages for coffee, tea, and spices. Moreover, in the West Asia market, Indonesia has an export advantage in palm oil, coconut, coffee, tea, and spices. Based on found priorities, considering export support policies in the identified markets as well as signing bilateral preferential trade agreements with trade partners is recommended.

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Published

2023-11-30

How to Cite

Hermawan, D., Martinus Pasaribu, Y. ., Muda, I., Abdunazarov, S., Saksono, H., Akhmadeev, R., Ali Hussein Al-Khafaji, F., & Hussien Alawadi, A. (2023). On the Priorities of Indonesia’s Agricultural Trade: Which Product-Market Combinations Are Economically the Best?. SOUTHEAST ASIAN JOURNAL OF ECONOMICS, 11(3), 1–27. Retrieved from https://so05.tci-thaijo.org/index.php/saje/article/view/269241

Issue

Vol. 11 No. 3 (2023): Southeast Asian Journal of Economics, Vol.11 No.3 (December 2023)

Section

Original Articles

License

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