scholarly journals THE IMPACT OF REGIONAL TRADE AGREEMENTS TO THE COMMODITY TRADE FLOWS (CASE STUDY: INTERNATIONAL PALM OIL TRADE)

2014 ◽  
Vol 4 (2) ◽  
pp. 193-206
Author(s):  
Riska Pujiati ◽  
Muhammad Firdaus ◽  
Andriyono Kilat Adhi ◽  
Bernhard Brummer

Indonesia and Malaysia are the major exporters of palm oil in South East Asia. South East Asia Regional Trade Agreement can affect worldwide trade flow of palm oil. The objective of this study is to examine the effect of the Regional Trade Agreement on the trade flows of Indonesian and Malaysian palm oil. The effect is analyzed with gravity model.  The result shows positive dynamic effect of Free Trade Agreement to palm oil trade flow. Regional Trade Agreement has higher impact to Malaysia than Indonesia due to dissimilar government policies.

2021 ◽  
Author(s):  
Nick Pasiecznik

Abstract E. guineensis, the oil palm or African oil palm, is native to equatorial Africa, although the only other species in the genus (E. oleifera) is indigenous to South and Central America. E. guineensis, however, is the major economic species: fruits of E. oleifera have a much lower oil content and are used only locally (Westphal and Jansen, 1989). However, E. guineensis was introduced into South America during the time of the slave trade, and naturalized groves are reported in coastal areas of Brazil near Bélem. In the mid-1800s it was introduced to South-East Asia via the Botanic Gardens in Bogor, Indonesia. The first oil-palm estates in Sumatra (since 1911) and Malaysia (since 1917) used plant material from second- and third-generation descendants of the original Bogor palms, from which one of the breeding populations, the Deli Dura, is derived (Westphal and Jansen, 1989). After soyabean, E. guineensis is the second most important crop worldwide for the supply of edible vegetable oil. Palm oil kernel, for example, is a major agricultural export from Malaysia, and South-East Asia is the main area of production.E. guineensis yields two types of oil: palm oil from the fleshy mesocarp, and palm-kernel oil from the kernel, in a volume ratio 10:1. Most palm oil is used in food preparation (margarines, and industrial frying oils used to prepare snack foods, etc.). Palm-kernel oil is similar in composition and properties to coconut oil, and is used in confectionery, where its higher melting point is particularly useful. It is also used in the manufacture of lubricants, plastics, cosmetics and soaps. The oil palm is a monoecious, erect, single-stemmed tree usually 20-30 m high. The root system is shallow and adventitious, forming a dense mat in the top 35 cm of the soil. The main stem is cylindrical, up to 75 cm diameter. E. guineensis palm fronds are not as suitable for thatching as other palm species, as the leaflets attach to the rachis at two angles. The oil palm is indigenous to the lowland humid tropics, and thrives on a good moisture supply and relatively open conditions. It can tolerate fluctuating water-tables with periods of standing water, although continuously flooded conditions are unsuitable. Sites often selected as suitable for oil palm are swamps, riverbanks, or sites considered too moist for tropical rain forest trees. Rainfall is often the major factor limiting production in plantations: highest yields occur where rainfall is evenly distributed throughout the year, with an optimum of 150 mm per month (Westphal and Jansen, 1989). Oil palms can grow on a variety of soil types, from sandy soils to lateritic red and yellow podzols, young volcanic soils, alluvial clays and peat soils; water-holding capacity appears to be the most important soil criterion. It is a demanding crop in terms of soil nutrients. The oil palm also has potential for incorporation into agroforestry practices. Traditional oil palm management in some areas of West Africa often incorporated both pure oil palm groves (perhaps selectively retained), scattered oil palms within temporary fields, and unexploited oil palms in mixed forest (Gupta, 1993). Harvesting of fruits usually starts about 2½ years after field planting; bunches ripen throughout the year and so harvesting usually takes place at intervals of 2 to 3 weeks in any particular area. Because oil palm is so responsive to environmental conditions, yields may vary greatly. However, over the lifetime of a palm tree, yields generally rise to a maximum in the first 6-8 years (after field planting), and will subsequently decline slowly. In Malaysia and Sumatra, well-managed plantations yield between 24 and 32 tonnes/hectare of fruit bunches; the oil yield from this will be between 4.8 and 7 tonnes/hectare. Oil palm plantations are often regarded as a better use of the land than annual food crops in humid tropical areas where soils are prone to leaching: the plantations provide continuous ground cover, and the palm canopy helps protect against soil erosion. Oil palm stems are increasingly used as a raw material for paper and composite board production. This area has big prospects in wood-based industries. It is recommended that more research is undertaken into the properties and utilization. Propagation techniques, the management of pests and diseases, and genetic resources are other areas in which studies could usefully be undertaken.


2019 ◽  
Vol 1 (1) ◽  
pp. 18-37
Author(s):  
Muhammad Arif Junaidi

Using trade flows data of ASEAN countries and China from 2002 to 2017, this studyestimates the impact of ACFTA on ASEAN countries and China’s trade balance in general,and also for Indonesia’s trade balance in specific by elaborating the impact of ACFTA onthe trade flows both exports and imports. Using the gravity model and estimating by OLSand PPML, this paper finds that the impact of tariffs elimination due to the implementationof ACFTA increased exports and imports for ASEAN countries and China in general, andfor Indonesia in particular. However, the aggregate trade balances of ASEAN membercountries and China is zero since the impact of ACFTA on imports offset the impact ofACFTA on exports. Tariff’s elimination due to the implementation of ACFTA on Indonesiashows a negative and statistically insignificant effect on imports and exports. Thus, tariffshave not played significant role on increasing Indonesia’s exports and imports. As a result,the impact of ACFTA on Indonesia’s trade balance cannot be quantified clearly since theimpact of tariffs on exports and imports are not significant.


2016 ◽  
Vol 34 (1) ◽  
pp. 19-29
Author(s):  
Hayk Khachatryan ◽  
Alan W. Hodges ◽  
Marco A. Palma ◽  
Charles R. Hall

This study summarizes regional trade flows in the U.S. nursery industry by incorporating origin and destination (OD) sales data from a national survey of ornamental plant growers and dealers conducted in 2014. Specifically, we discuss: 1) regional annual sales reported by the green industry firms in 2013, 2) percentage distribution of OD trade flows by regions and states, and 3) differences in the percentage distribution of OD trade flows during the 5-year period by region. Of 32,000 questionnaires sent via mail and email, a total of 2,657 usable observations were received and used in the analysis. The OD trade flow results were then compared with those of 2008 estimates by eight United States regions. The highest proportion of inter-regional sales were reported by firms in the Appalachian (35.7%), followed by Mountain (25.4%), and Southeast (19.1%) regions, and the lowest inter-regional sales were in the Midwest (2.2%) and Great Plains (0.9%) regions. The results show considerable changes in both intra-state (within home state) and inter-regional (between states) trade flows from 2008 to 2013. Overall, intra-regional trade in the Great Plains, Midwest, Pacific, and Southeast regions increased by 9.9, 3.7, 1.6, and 7.8% from 2008 to 2013, respectively. However, the proportion of sales within Appalachian, Mountain, Northeast and Southcentral regions, decreased by 11.1, 8.3, 3.8 and 0.2%, respectively. Implications for relevant green industry stakeholders are discussed.


2019 ◽  
Vol 20 (2) ◽  
pp. 195-218 ◽  
Author(s):  
Michael Lebacher ◽  
Paul W Thurner ◽  
Göran Kauermann

In this article, we analyse dependence structures among international trade flows of major conventional weapons from 1952 to 2016. We employ a Network Disturbance Model commonly used in inferential network analysis and spatial econometrics. The dependence structure is represented by pre-defined weight matrices that allow for correlating flows from the network of international arms exchange. Three dependence structures are proposed, representing sender-, receiver- and sender–receiver-related dependencies. The appropriateness of the presumed structures is comparatively assessed using the Akaike Information Criterion (AIC). It turns out that the dependence structure among the arms trade flows is complex and can be represented best by a specification that relates each arms trade flow to all exports and imports of the sending and the receiving state. Controlling for exogenous variables, we find that the trade volume increases with the GDP of the sending and the receiving state while the impact of geographical distance, regime dissimilarity and formal alliance membership is rather small.


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