AFTA and its implication to the export demand of Indonesian palm oil

This paper examines the impacts of trade liberalization policy changes (reduction in export duty and import tariff) on the export demand of the Indonesian palm oil. The study utilised an error correction model. The model is simulated by decreasing the export duty and import tariff individually by 10...

Full description

Bibliographic Details
Main Authors: Ernawati, Mohamed Arshad, Fatimah, Shamsudin, Mad Nasir, Mohamed, Zainal Abidin
Format: Article
Language:English
Published: Pusat Sosial Ekonomi dan Kebijakan Pertanian 2006
Online Access:http://psasir.upm.edu.my/id/eprint/56437/
http://psasir.upm.edu.my/id/eprint/56437/1/AFTA%20and%20its%20implication%20to%20the%20export%20demand%20of%20Indonesian%20palm%20oil.pdf
_version_ 1848853082864091136
author Ernawati,
Mohamed Arshad, Fatimah
Shamsudin, Mad Nasir
Mohamed, Zainal Abidin
author_facet Ernawati,
Mohamed Arshad, Fatimah
Shamsudin, Mad Nasir
Mohamed, Zainal Abidin
author_sort Ernawati,
building UPM Institutional Repository
collection Online Access
description This paper examines the impacts of trade liberalization policy changes (reduction in export duty and import tariff) on the export demand of the Indonesian palm oil. The study utilised an error correction model. The model is simulated by decreasing the export duty and import tariff individually by 10, 30, 50 and 100 percent. To see the combine effect both in export duty and import tariff were simultaneously reduced by 10, 30, 50, and 100 percent. The findings indicate that trade liberalization due to increase domestic price and reduce in world price. Due to the reduction in export duty, the quantity exported to India, China, Europe, and ROW increased by 0.38, 3.77, 0.67 and 4.63 percent respectively. Reduction on import tariff on the exported-quantity to India, China, Europe, and rest of the world increased by 0.25, 2.67, 0.49, and 2.96 percent respectively. And export duty and import tariff reduction by 10 percent increased export to India, China, Europe, and ROW by 0.64,6.23, 1.12, and 7.35 percent, respectively.
first_indexed 2025-11-15T10:48:19Z
format Article
id upm-56437
institution Universiti Putra Malaysia
institution_category Local University
language English
last_indexed 2025-11-15T10:48:19Z
publishDate 2006
publisher Pusat Sosial Ekonomi dan Kebijakan Pertanian
recordtype eprints
repository_type Digital Repository
spelling upm-564372017-07-31T09:51:01Z http://psasir.upm.edu.my/id/eprint/56437/ AFTA and its implication to the export demand of Indonesian palm oil Ernawati, Mohamed Arshad, Fatimah Shamsudin, Mad Nasir Mohamed, Zainal Abidin This paper examines the impacts of trade liberalization policy changes (reduction in export duty and import tariff) on the export demand of the Indonesian palm oil. The study utilised an error correction model. The model is simulated by decreasing the export duty and import tariff individually by 10, 30, 50 and 100 percent. To see the combine effect both in export duty and import tariff were simultaneously reduced by 10, 30, 50, and 100 percent. The findings indicate that trade liberalization due to increase domestic price and reduce in world price. Due to the reduction in export duty, the quantity exported to India, China, Europe, and ROW increased by 0.38, 3.77, 0.67 and 4.63 percent respectively. Reduction on import tariff on the exported-quantity to India, China, Europe, and rest of the world increased by 0.25, 2.67, 0.49, and 2.96 percent respectively. And export duty and import tariff reduction by 10 percent increased export to India, China, Europe, and ROW by 0.64,6.23, 1.12, and 7.35 percent, respectively. Pusat Sosial Ekonomi dan Kebijakan Pertanian 2006 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/56437/1/AFTA%20and%20its%20implication%20to%20the%20export%20demand%20of%20Indonesian%20palm%20oil.pdf Ernawati, and Mohamed Arshad, Fatimah and Shamsudin, Mad Nasir and Mohamed, Zainal Abidin (2006) AFTA and its implication to the export demand of Indonesian palm oil. Jurnal Agro Ekonomi, 24 (2). pp. 115-132. ISSN 0216-9053; ESSN: 2541-1527 http://ejurnal.litbang.pertanian.go.id/index.php/jae/article/view/4728
spellingShingle Ernawati,
Mohamed Arshad, Fatimah
Shamsudin, Mad Nasir
Mohamed, Zainal Abidin
AFTA and its implication to the export demand of Indonesian palm oil
title AFTA and its implication to the export demand of Indonesian palm oil
title_full AFTA and its implication to the export demand of Indonesian palm oil
title_fullStr AFTA and its implication to the export demand of Indonesian palm oil
title_full_unstemmed AFTA and its implication to the export demand of Indonesian palm oil
title_short AFTA and its implication to the export demand of Indonesian palm oil
title_sort afta and its implication to the export demand of indonesian palm oil
url http://psasir.upm.edu.my/id/eprint/56437/
http://psasir.upm.edu.my/id/eprint/56437/
http://psasir.upm.edu.my/id/eprint/56437/1/AFTA%20and%20its%20implication%20to%20the%20export%20demand%20of%20Indonesian%20palm%20oil.pdf