POLICY ANALYSIS OF DEMAND FOR INDONESIAN PLYWOOD: Case of Japanese Plywood Market

• Main Authors: , Tri Setiawan, , Prof. Ching-Yang Lin
• Format: Theses and Dissertations NonPeerReviewed
• Published: [Yogyakarta] : Universitas Gadjah Mada 2013
• Subjects: ETD
• Online Access: https://repository.ugm.ac.id/123614/; http://etd.ugm.ac.id/index.php?mod=penelitian_detail&sub=PenelitianDetail&act=view&typ=html&buku_id=63727
• Institution: Universitas Gadjah Mada

This paper examines the Japanese import demand of Indonesian plywood during period 1989-2011 using Transcendental Logarithmic model. Indonesian plywood compared with three major plywood exporting countries (Malaysia, China and New Zealand). The result shows that the real expenditure has positive impact on the share of each different countriesimport demand.The changing price of plywood has negative impact on the share of each different countries demand. The low own-price elaticities in Indonesian plywood price induced in decreases demand for plywood import from Indonesia. Furthermore, Indonesian plywood specified as inelastic goods by ownprice elasticity, more substitute goods in cross-price elasticity and normal goods in income elasticity. Based on the policy analysis, the simulation to give subsidy by15% in the selling price of Indonesian plywood gives increases share of Indonesian plywood by 1.05%. Moreover, decrease 10% in price of China�s plywood give result that share of Indonesia�s plywood decreasing by 0.46%.