Palm Oil Exports from Indonesia and Malaysia Faced Uncertainty in Global Trade During The Covid-19 Pandemic.
(1) Regional Research and Innovation Agency of Penukal Abab Lematang Ilir Regency ,Indonesia
(2) Regional Research and Innovation Agency of Penukal Abab Lematang Ilir Regency ,Indonesia
(*) Corresponding Author
Abstract
This paper analyzes the export performance of Indonesia and Malaysia in global, Chinese, and Indian markets during the uncertain global trade caused by the pandemic. We employed the RCA index to assess their competitiveness and used the CMS analysis to identify the factors contributing to the growth of palm oil exports. Indonesia exhibited stronger competitiveness than Malaysia in the global and Chinese markets despite a declining trend. An interesting observation is the decline in Indonesia's RCA index value from 2019 to 2021, despite an increasing trend in export market share during the pandemic. The CMS analysis indicates that Indonesia and Malaysia benefited from positive effects in terms of global export growth and commodities. This shows that both countries successfully adapted to global market challenges, particularly in terms of environmental sustainability. However, Indonesia showed positive competitiveness effect values in both periods, while Malaysia had negative values. This suggests that Indonesia increased its market share during that period while Malaysia experienced a decline in market share.
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References
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DOI: http://dx.doi.org/10.33019/ijbe.v10i2.1148
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