Demand for Indonesia’s Coconut Crude Oil in the Netherlands: Application of LA/AIDS Model - Open Journal of Business and Management

OJBM > Vol.10 No.1, January 2022

Open Journal of Business and Management

Volume 10, Issue 1 (January 2022)

ISSN Print: 2329-3284 ISSN Online: 2329-3292

Google-based Impact Factor: 1.13 Citations

Demand for Indonesia’s Coconut Crude Oil in the Netherlands: Application of LA/AIDS Model ()

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DOI: 10.4236/ojbm.2022.101009 221 Downloads 1,457 Views Citations

Author(s)

Imanuel do Rosário Ximenes^1*, Rita Nurmalina², Amzul Rifin²

Affiliation(s)

¹Graduate School of Agribusiness, Postgraduate School, Institut Pertanian Bogor, Bogor, Indonesia.
²Departement of Agribusiness, Faculty of Economics and Management, Institut Pertanian Bogor, Dramaga, Indonesia.

ABSTRACT

Besides the Philippines, Indonesia is the second-largest coconut crude oil exporter country in the Netherlands. The level of competition for Indonesia’s coconut crude oil (CCO) is necessary to estimate in the main market. The primary aim of this study was to analyze the level of competition for Indonesia’s coconut crude oil in the Netherlands, using a linear approximate AIDS model. The data used monthly time series on import values and quantities from 2004 to 2019 by the Netherlands. The results indicate that Indonesia’s position in the Netherlands was inferior compared to the Philippines. The own-price elasticity of Indonesia’s coconut crude oil was non-sensitive to the price change. Moreover, Indonesia and the Philippines were competing with each other. Thus, increasing the coconut crude oil export and improving quality size is one of the alternative strategies to catch up with the competition in the Netherlands.

KEYWORDS

Coconut Crude Oil, LA/AIDS, Competition, Indonesia

Share and Cite:

Ximenes, I. , Nurmalina, R. and Rifin, A. (2022) Demand for Indonesia’s Coconut Crude Oil in the Netherlands: Application of LA/AIDS Model. Open Journal of Business and Management, 10, 144-154. doi: 10.4236/ojbm.2022.101009.

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