Research Paper
Year: 2021 | Month: May | Volume: 8 | Issue: 5 | Pages: 38-52
DOI: https://doi.org/10.52403/ijrr.20210507
Competitiveness Analysis of Indonesian Pepper in International Market
Christine Amorita1, Arief Daryanto2, Sahara3
1School of Business, IPB University, Bogor, Indonesia
2Vocational School, IPB University, Bogor, Indonesia
3Faculty of Economics and Management, IPB University, Bogor, Indonesia
Corresponding Author: Christine Amorita
ABSTRACT
Indonesia is one of the world's largest pepper producing countries and most of Indonesia's pepper production is exported abroad. Apart from the superiority of Indonesia's natural resources, namely as a country with the second-largest area of pepper cultivation, now competition between countries cannot be measured only by the number of exports it owns. The existence of synergy between countries in producing a product with high economic value is evidence of trade integration between countries. This study aims to analyze the comparative advantage of Indonesian pepper compared to Vietnam, Brazil, India, and Malaysia, to analyze the competitive advantage of Indonesian pepper, and to analyze the value chain of Indonesian pepper. This study used a sample of five countries, namely Indonesia, Vietnam, Brazil, India, and Malaysia. This research used quantitative and qualitative research approaches. The methods used in this research used Revealed Comparative Advantage (RCA), Porter's Diamond Theory, and value added analysis. The analysis results show that the five competing countries have a comparative advantage over pepper; Indonesia has a competitive advantage in conditions of natural resource factors. Indonesia's participation in the global value chain is declining. The main focus of the government in 2020 is on the input, production, capital, and market sides.
Keywords: comparative advantage, competitive advantage, pepper, value added, value chain.
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