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THE DETERMINANTS OF INDONESIAN COFFEE EXPORT: GRAVITY MODEL APPROACH TO TOP 5 IMPORTING COUNTRIES

THE DETERMINANTS OF INDONESIAN COFFEE EXPORT: GRAVITY MODEL APPROACH TO TOP 5 IMPORTING COUNTRIES
MUHAMMAD ADNAN KUSHOUGI
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Inggris
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Indonesian coffee is one of the results of agriculture sector in Indonesia whose value of export are quite high. The quantity of export of Indonesian coffee throughout the year 2001-2017 to the top 5 importers which are USA, Japan, Germany, Italy and Malaysia are increasing over the year. This research aims to analyze does the GDP of Indonesia, GDP of destination countries, the absolute difference in GDP per-capita, real exchange rate of Rupiah currency and trade destination currency, port to port distance, membership of International Coffee Organization, and mutual FTA membership are the determinants in the export of Indonesian coffee throughout the year 2001-2017. The methods used on this research are descriptive analysis and quantitative analysis. The result of this research are achieved through Generalized Least Square in Fixed Effect Model estimation which resulted that GDP of Indonesia, absolute difference in GDP per-capita, real exchange rate have a positive and significant effect meanwhile the dummy variable ICO membership have a negative and significant effect, lastly mutual FTA membership have a negative but not significant effect.