Since 2014
Does Chinese Vegetable Oil Consumption Have Positive Implications for the Indonesia-China Trade Balance?
Integrated Journal of Business and Economics
View Archive Info| Field | Value | |
| Title |
Does Chinese Vegetable Oil Consumption Have Positive Implications for the Indonesia-China Trade Balance?
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| Creator |
Purba, Jan Horas Veryady
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| Subject |
Economic development; palm oil; management
consumption pattern; widening gap; trade balance deficit F14; Q17 |
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| Description |
Indonesia is the world's CPO producer country, and at the same time, Indonesia also the largest exporter of CPO in global market. Some of the main countries that are becoming export destinations for Indonesia CPO are India, China, the European Union, USA and Pakistan. Empirically, it is seen that the phenomenon of widening gap in Chinese vegetable oil consumption patterns, where consumption growth is higher than domestic production growth. This boosted Indonesia's CPO exports to China and subsequently had an impact on the Indonesia-China trade balance. Analytical method used is ordinary least square (OLS), which is arranged in two-equation models. Findings of this study conclude that (a) Indonesia's CPO exports to China are affected by the increase in consumption of vegetable oils in China. This is consistent with the expected hypothesis; (b) the value of Indonesia's CPO exports to China has a positive impact and helps reduce Indonesia's trade balance deficit. This is consistent with the research hypothesis. Indonesia's CPO exports have a positive impact on the Indonesia-China trade balance, in particular contributing to overcome the Indonesia-China trade balance deficit. This research shows that CPO is Indonesia's strategic commodity that helps overcome Indonesia's trade balance deficit.
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| Publisher |
Fakultas Ekonomi, Universitas Bangka Belitung
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| Contributor |
—
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| Date |
2020-01-16
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
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| Format |
application/pdf
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| Identifier |
http://ojs.ijbe-research.com/index.php/IJBE/article/view/238
10.33019/ijbe.v4i1.238 |
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| Source |
Integrated Journal of Business and Economics; Vol 4, No 1 (2020): Integrated Journal of Business and Economics; 36-44
Integrated Journal of Business and Economics (IJBE); Vol 4, No 1 (2020): Integrated Journal of Business and Economics; 36-44 2549-3280 2549-5933 |
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| Language |
eng
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| Relation |
http://ojs.ijbe-research.com/index.php/IJBE/article/view/238/pdf
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| Rights |
Copyright (c) 2020 Jan Horas Veryady Purba
http://creativecommons.org/licenses/by/4.0 |
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