Palm oil is an essential commodity used in the manufacture of various daily products and is highly competitive with vegetable oil. However, the palm oil competition is fierce and complex due to movement of palm oil trade. The study examined the determinant, stability, and duration of competitiveness in the global palm oil trade involving countries worldwide. This research was analyzed from 1996 to 2019 using descriptive analysis, panel regression, stability, and Kaplan–Meier tests. The results showed that palm oil supply in the global market is centralized with distributed demand. The competitiveness of palm oil based on revealed symmetric comparative advantage (RSCA) and trade balance index (TBI) is similar to its suppliers globally. The positive factors that determine the competitiveness in the global palm oil trade are population and import of animal or vegetable fats and oils. GDP per capita and dummy RSPO negatively affect competitiveness. The stability and duration analysis showed that the global palm oil market is highly competitive.
The Internet is considered to be an important factor in accelerating economic growth. There is a statistic regarding the inline of higher economic growth with higher Internet access. However, the impact of the Internet on agriculture as a real sector regarding its contribution on economic growth has not been explored in detail. The purpose of this study is to analyze the global effect of the Internet on agricultural sector performance. Static panel regression was used in this study by involving 126 countries using data from World Bank Open Data (2012–2019). Extended analysis was employed by applying the regression into two classifications, namely, countries by continent and the country composition of World Economic Outlook (WEO) groups. The result of this study shows that there exists a positive and significant global effect from Internet users, fixed broadband subscriptions, and secure Internet servers on agricultural sector performance. Additionally, the positive effect of Internet variables on agriculture was only found in Africa, Asia, and Oceania. In the country composition of WEO groups, there existed a positive and significant effect of Internet users and fixed broadband subscriptions on agricultural sector performance in economies classified as emerging and developing. This implies that the role of the Internet on agriculture is relatively higher in developing countries. Therefore, policymakers in Africa, Asia, Oceania, and emerging and developing economies (WEO Groups) must consider the role of Internet to improve agricultural sectors.
The agricultural sector contributes to the national economy by engaging in export activities within the global market. Conversely, the rapid development of the Internet has greatly impacted output production and has introduced heightened competitiveness among various countries. This study aims to examine the impact of Internet-related indicators on the competitive standing of agri-food industries on a global scope. These indicators are represented by user engagement, infrastructure availability, and security. The panel regression analysis focused on 126 countries from 2010 to 2020. The findings reveal that Internet infrastructure and security positively affect the competitiveness of agri-food exports. However, the indicator related to Internet users exhibits a negative impact. There is a change in competitiveness structure from enhancing the Internet indicator to 50%. After simulation, we found that 80 countries have a positive value of RSCA. It is lower than the actual value of RSCA in 89 countries. This study concluded that developing countries still have better opportunities to increase their agri-food export competitiveness than developed countries.
28 November 2023 in Jurnal Manajemen dan Agribisnis
Palm oil is an important commodity between Indonesia and Malaysia with a higher contribution to the national economy. However, the investigation into its competitiveness is still important due to fierce competition in the global world. This study aims to investigate the Relative Export Competitiveness (REC) of palm oil downstream and its determinant factors between Indonesia and Malaysia from 1970 until 2020. This study utilizes REC based on merchandise trade and multiple regression by using several variables influencing its REC. The findings reveal that REC in Indonesia has been greater than that of Malaysia over the past 20 years. Initially, Malaysia had a stronger position in REC than Indonesia, particularly from 1971 to 1997. Our analysis demonstrates that REC in Indonesia is positively influenced by factors such as the palm oil policy, the existence of palm oil organizations, and the official exchange rate. Conversely, GDP per capita and the palm oil policy positively impact Malaysias REC. However, Foreign Direct Investment (FDI) and the ASEAN Free Trade Agreement (AFTA) have a negative effect on REC in both countries. Based on these results, Indonesia and Malaysia must examine proper palm oil downstream policy to boost competitiveness. Keywords: business analytics, determinant factor, palm oil downstream, relative export competitiveness, trade
30 November 2022 in Jurnal Manajemen dan Agribisnis
Palm oil is one of the agricultural commodities grown in world trade. North America is one of the regions with high import demand, so that the region can be observed as an export destination. This study aimed to examine the palm import demand in three selected North American Countries (United States of America (USA), Canada and Mexico) and its determinants. Autoregressive Distributive Lags (ARDL) was applied in this study between 1990 and 2017. The results indicate that the demand for palm oil in North American countries has increased. However, the import growth and shares have fluctuated relatively. GDP, GDP Indonesia, GDP Malaysia world palm oil prices, soybean oil prices, and biodiesel production significantly affect palm oil imports in the USA in the long and short-run. The GDP and GDP of Indonesia are the factors that influence palm oil import in Canada and Mexico in the long run. However, we found the impact of GDP Malaysia and GDP Indonesia in Canada in the short-run. Moreover, Indonesias GDP and GDP significantly influenced palm oil import in Mexico. This research implies that oil palm exporting countries need to consider these factors, especially GDP, before expanding their market to North American countries as one of the biggest palm oil markets in the global world. Keywords: business analytics, biofuel, gdp, import, palm oil, price, north america