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

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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

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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

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