Estimation of Indonesia Wooden Furniture Export Demand Function

Authors

  • Hanna Sri Meiliani Uli Simangunsong Bogor Agricultural University
  • Bintang Charles Hamonangan Simangunsong Bogor Agricultural University
  • Elisa Ganda Togu Manurung Bogor Agricultural University

DOI:

https://doi.org/10.23960/jsl.v9i3.482

Abstract

The export value of Indonesia's wooden furniture was sharply decreased by about 31.9% over the period in 2007-2018. On the other hand, global wooden furniture export was increased by 5.8% during the same period. Understanding the behavior of the demand side of Indonesia's wooden furniture exports that is reflected by its relative price and income elasticities is needed for the policy development of Indonesia's wooden furniture industry in the future. The objective of this study was to estimate the export demand function of Indonesia wooden furniture using a panel data regression model. Three types of panel data models, such as pooled ordinary least squares model, fixed-effects model, and random effects model, were investigated. The results showed that the export demand function of Indonesia wooden furniture could be well estimated using the fixed effects model. Relative price elasticity and income elasticity were -0.45 and 0.8, respectively. The adjusted R2 value obtained was 0.99.

Keywords: export demand function, panel data regression, wooden furniture

Downloads

Download data is not yet available.

Author Biographies

Hanna Sri Meiliani Uli Simangunsong, Bogor Agricultural University

Departemen Hasil Hutan, Fakultas Kehutanan dan Lingkungan, Institut Pertanian Bogor

Bintang Charles Hamonangan Simangunsong, Bogor Agricultural University

Departemen Hasil Hutan, Fakultas Kehutanan dan Lingkungan, Institut Pertanian Bogor

Elisa Ganda Togu Manurung, Bogor Agricultural University

Departemen Hasil Hutan, Fakultas Kehutanan dan Lingkungan, Institut Pertanian Bogor

References

AMKRI. 2015. Roadmap Industri Mebel dan Kerajinan Indonesia. AMKRI, Jakarta.
Baudin, A. 1987. The Demand of Sawnwood in Norway. Forest Sector and Trade Models: Theory and Applications. Center for International Trade in Forest Products, University of Washington, Seattle.
Blatner, K. A. 1981. An Approach to The Estimation of Import Price Elasticity by Supplier. Forest Science 35: 30-41.
Buogiorno J. 1979. A Monthly Model of The United States Demands for Softwood Lumber Imports. Forest Science 25: 751-755.
Cengel, D. W., McKillop, W. 1990. US Trade in Transition – an Econometric View of South Sea Wood Flows. Forest Science 36: 425-437.
Chang, S. J. 1987. An Econometric Analysis of Supply and Demand for Forest Products in Taiwan. Forest Products Trade: Market Trends and Technical Development. University of Washington, Seattle.
Chou, J. J., Buogiorno, J., United States Demand for Hardwood Plywood Imports by Country of Origin. Forest Science 29: 225-237.
CSIL. 2016. World Furniture Market. Tersedia pada <https://www.iffs.com.sg/industry-news/currentstatus-asias-furniture-production-markets/> (Apr. 15, 2018).
Djaja, K. 1992. Export performance and export demand of Indonesian forest products. The RTD. Iowa State University, Iowa.
Garcia, J. M. P. 1987. Implication of Using Exchange Rates for Estimate of Income and Price Elasticity in Paper Demand Studies. Forest Sector and Trade Models: Theory and Applications. University of Washington, Seattle.
Goldstein, M., Khan, S. 1985. Income and price effects in foreign trade. In Jones R, Kenen P. 1985. Handbook of International Economics. McGraw Hill, Boston.
Gujarati, D. N., Porter, D. C. 2009. Basic Econometric. 5th Ed. McGraw Hill, New York.
Porter, M. E. 1990. The Competitive Adventage of Nations. Free Press, New York.
Purnomo, H., Irawati, R. H., Wulandari, R. 2011. Kesiapan Produsen Mebel di Jepara dalam Menghadapi Sertifikasi Ekolabel. Jurnal Manajemen Hutan Tropika 17(3): 127-134.
Salim, Z., Munadi, E. 2017. Info Komoditi Furnitur. Badan Pengkajian dan Pengembangan Perdagangan, Kementerian Perdagangan Republik Indonesia, Jakarta.
UN COMTRADE. 2020. International Trade Statistics Database. <https://comtrade.un.org/data/> (Feb. 23, 2020).
Vincent, J. R. 1991. Substitution Between Tropical and Temperate Sawlogs. Forest Science 36: 657-664.
Yukutoke. 1984. Econometric Analysis of South Seas and USSR Log Market in Japan. Agribusiness Resource Quarterly 17:269-279.

Downloads

Published

13-09-2021

How to Cite

Simangunsong, H. S. M. U., Simangunsong, B. C. H., & Manurung, E. G. T. (2021). Estimation of Indonesia Wooden Furniture Export Demand Function. Jurnal Sylva Lestari, 9(3), 357–367. https://doi.org/10.23960/jsl.v9i3.482

Issue

Vol. 9 No. 3 (2021): September

Section

Articles

Statistics

 Abstract views: 1295 times
 PDF downloaded: 752 times

Metrics

License

Copyright (c) 2021 Hanna Sri Meiliani Uli Simangunsong, Bintang Charles Hamonangan Simangunsong, Elisa Ganda Togu Manurung

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-NonCommercial 4.0 Licence that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.

Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.

Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).