JDE (Journal of Developing Economies)
Vol. 6 No. 1 (2021)

The Determinants of Indonesia's Coal Exports Demand to Six Asian Countries

Susanto, Deni Aditya (Unknown)
Admi, Randy (Unknown)



Article Info

Publish Date
01 Jun 2021

Abstract

Coal is one of the most needed commodities globally because of its power plants and industrial machinery. According to World Coal Institute (2018), the world coal trade is dominated by several producing countries, Indonesia (ranked 2nd with 28.21 percent). Indonesia's coal exports are influenced by determinants of demand from export destination countries. This study will test at least four demand determinants in destination countries for their effects on Indonesian exports: exchange rate, foreign exchange reserves, population, and coal production. The study used six Asian countries (Japan, South Korea, India, Thailand, Philippines, and Malaysia) over 2008-2018. The methodology used is multiple linear regression with a series of chow and Hausman tests. Each variable has been tested by t-test (partial) and f test (simultaneous), and R2 test to analyze the percentage of the influence of the model on the dependent variable. This study revealed that the variable foreign exchange reserves and population growth of six Asian countries have a significant positive effect on Indonesia's coal export. Simultaneously, the exchange rate and coal production of the destination countries were not proven to have a negative impact but positively affected coal export. All variables have a significant and partially significant effect so that the model can explain the coal export variable at 93.08 percent (Adjust R-squared). Keywords: Coal Export, Demand Determinants JEL: C2, F1, Q31

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Journal Info

Abbrev

JDE

Publisher

Subject

Description

The Journal of Developing Economies (JDE) is a journal published by the Department of Economics, Faculty of Economics and Business, Airlangga University with the ISSN 2541-1012 (print version) and 2528-2018 (online version). This journal is published every 6 months, June and December, through a ...