Export Premia in The Palm Oil Industry Sector in Indonesia

DOI

10.2991/icied-17.2018.36How to use a DOI?

Keywords

export premia; learning by exporting hypothesis. JEL Classification: F10, F61, O12

Abstract

Among the advantages of international trade is export premia, in which the exporters have the advantages of productivity compared to non-exporter. Export premia can be analyzed through two hypotheses: self-selection hypothesis and learning-by-exporting hypothesis. The first hypothesis states that high level of firm productivity is a requirement to enter the export market. On the other hand, the second hypothesis convinces that the decision to enter the export market positively impacts the firm productivity. Empirically, the learning-by-exporting hypothesis is still inconclusive compared to the self-selection hypothesis. Based on literatures, this study applies Total Factor Productivity (TFP) measurement to test learning-by-exporting hypothesis in the palm oil industry in Indonesia as a major palm oil producing and exporting country in the world. Although the Indonesian government has applied an export tax policy in the national palm oil industry, the empirical result during the period of 2010-2014 showed that export experience (dummy and intensity) in previous year had positive impact on firm productivity in the current year

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Mohamad Fauzan
AU  - Fithra Faisal Hastiadi
PY  - 2017/12
DA  - 2017/12
TI  - Export Premia in The Palm Oil Industry Sector in Indonesia
BT  - Proceedings of the 2nd International Conference on Indonesian Economy and Development (ICIED 2017)
PB  - Atlantis Press
SP  - 190
EP  - 194
SN  - 2352-5398
UR  - https://doi.org/10.2991/icied-17.2018.36
DO  - 10.2991/icied-17.2018.36
ID  - Fauzan2017/12
ER  -