Diamond Model and Competition of Rubber Export Markets: Evidence from Sumatra Economic Growth Center

Ansofino AnsonfinoZusmelia ZusmeliaLovelly Dwinda DahenYossi Eka Puteri

DOI 10.7160/aol.2021.130102
No 1/2021, March
pp. 15-27

Ansonfino, A., Zusmelia, Z., Dahen, L. D. and Puteri, Y. E. (2021) “Diamond Model and Competition of Rubber Export Markets: Evidence from Sumatra Economic Growth Center", AGRIS on-line Papers in Economics and Informatics, Vol. 13, No. 1, pp. 15-27. ISSN 1804-1930. DOI 10.7160/aol.2021.130102.

Abstract

The focus of this research is on how the position of competitiveness of Indonesian rubber exports among ASEAN countries and the dominant factors causing the competitiveness of Indonesian rubber exports experienced a downward. Approach to measuring rubber export competitiveness uses the Lafay Index, and factors that affect the competitiveness using the Diamond model by using panel data analysis method. The results show that there has been a decline in the competitiveness of Indonesia's rubber exports to ASEAN countries, the greatest decline in competitiveness that occurred in Singapore, Malaysia, and Thailand. Factors that affect Indonesia's export competitiveness that is more dominant are a foreign direct investment, price levels, and interest rates. FDI should be directed at improving the quality of export products following the quality of ISNR and upgrading the quality of rubber export products from SIT 20, and directly more beneficial for the manufacture of goods for final consumers.

Keywords

Export competitiveness, the Lafay index, diamond model.

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