What Determines Exports of Coconut Products? The Case of Indonesia

Abstract

This study aims to investigate what factors determine the exports of coconut and its products. An ordinary least squares method was used to estimate the export value of copra as a proxy for coconut and its products against the explanatory variables, namely the average Gross National Income of eight Indonesia's coconut importing countries, the price of copra, and a dummy variable representing the 1997 economic crisis. Three model specifications were employed. Using the data covering the 1980-2016 period, ordinary least squares estimation results show that the higher the average Gross National Income of coconut importing countries the higher exports. Economic crisis has a significantly negative effect on coconut and its products exports. However, the effect of price is found insignificant. In the light of increasing importance of coconut products in the global market, the government should have a long-term strategy for coconut plantations rejuvenation and expansion. Incentives should also be provided for farmers to increase domestic production of coconuts to support exports.