Influential Factors of Indonesian Cocoa Export: Evidence from FMOLS and DOLS Approaches

John Atsu Agbolosoo; Dick Chune Midamba; Ibrahim Massaquoi; Ratna Mega Sari

doi:doi:10.11648/j.ijae.20240906.12

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Influential Factors of Indonesian Cocoa Export: Evidence from FMOLS and DOLS Approaches

John Atsu Agbolosoo

, Dick Chune Midamba^*

, Ibrahim Massaquoi

, Ratna Mega Sari

Published in International Journal of Agricultural Economics (Volume 9, Issue 6)

Received: 2 October 2024 Accepted: 21 October 2024 Published: 12 November 2024

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Abstract

The study investigated the determinants of cocoa exports using both FMOLS and DOLS approaches. The time series data were obtained from FAOSTAT and ICCO websites from the year 1990 to 2022. ADF and PP stationary unit roots were conducted to examine the stationarity of the variables while Johansen cointegration was used to verify the cointegrating among the variables. The outcome of the Johansen cointegration analysis suggests the existence of a cointegration relationship among the eight variables, indicating the presence of long-run relationships among the variables. The estimated results revealed that cocoa productivity, domestic cocoa production, domestic cocoa supply, exchange rates, and world cocoa prices affect Indonesian cocoa exports. Based on the estimated results and discussion, the study draws a conclusion that cocoa productivity, domestic cocoa production, exchange rates, and world cocoa prices positively and statistically significantly influenced cocoa exports while domestic cocoa supply negatively affected Indonesian cocoa exports. The study recommends that the government of Indonesia should stabilize the fluctuating exchange rates and encourage cocoa production via higher productivity by practicing farm rehabilitation practices to increase productivity and cocoa beans for exports. Moreover, the supply of cocoa beans should also be increased by increasing domestic producer prices. These key determinants are crucial for policymakers and industry stakeholders to understand and address to enhance the competitiveness and growth of the cocoa export industry in Indonesia.

Published in	International Journal of Agricultural Economics (Volume 9, Issue 6)
DOI	10.11648/j.ijae.20240906.12
Page(s)	295-305
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Cocoa Exports, Domestic Supply, FMOLS, Exchange Rate, Productivity

References

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APA Style

Agbolosoo, J. A., Midamba, D. C., Massaquoi, I., Sari, R. M. (2024). Influential Factors of Indonesian Cocoa Export: Evidence from FMOLS and DOLS Approaches. International Journal of Agricultural Economics, 9(6), 295-305. https://doi.org/10.11648/j.ijae.20240906.12

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ACS Style

Agbolosoo, J. A.; Midamba, D. C.; Massaquoi, I.; Sari, R. M. Influential Factors of Indonesian Cocoa Export: Evidence from FMOLS and DOLS Approaches. Int. J. Agric. Econ. 2024, 9(6), 295-305. doi: 10.11648/j.ijae.20240906.12

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AMA Style

Agbolosoo JA, Midamba DC, Massaquoi I, Sari RM. Influential Factors of Indonesian Cocoa Export: Evidence from FMOLS and DOLS Approaches. Int J Agric Econ. 2024;9(6):295-305. doi: 10.11648/j.ijae.20240906.12

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@article{10.11648/j.ijae.20240906.12,
  author = {John Atsu Agbolosoo and Dick Chune Midamba and Ibrahim Massaquoi and Ratna Mega Sari},
  title = {Influential Factors of Indonesian Cocoa Export: Evidence from FMOLS and DOLS Approaches
},
  journal = {International Journal of Agricultural Economics},
  volume = {9},
  number = {6},
  pages = {295-305},
  doi = {10.11648/j.ijae.20240906.12},
  url = {https://doi.org/10.11648/j.ijae.20240906.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20240906.12},
  abstract = {The study investigated the determinants of cocoa exports using both FMOLS and DOLS approaches. The time series data were obtained from FAOSTAT and ICCO websites from the year 1990 to 2022. ADF and PP stationary unit roots were conducted to examine the stationarity of the variables while Johansen cointegration was used to verify the cointegrating among the variables. The outcome of the Johansen cointegration analysis suggests the existence of a cointegration relationship among the eight variables, indicating the presence of long-run relationships among the variables. The estimated results revealed that cocoa productivity, domestic cocoa production, domestic cocoa supply, exchange rates, and world cocoa prices affect Indonesian cocoa exports. Based on the estimated results and discussion, the study draws a conclusion that cocoa productivity, domestic cocoa production, exchange rates, and world cocoa prices positively and statistically significantly influenced cocoa exports while domestic cocoa supply negatively affected Indonesian cocoa exports. The study recommends that the government of Indonesia should stabilize the fluctuating exchange rates and encourage cocoa production via higher productivity by practicing farm rehabilitation practices to increase productivity and cocoa beans for exports. Moreover, the supply of cocoa beans should also be increased by increasing domestic producer prices. These key determinants are crucial for policymakers and industry stakeholders to understand and address to enhance the competitiveness and growth of the cocoa export industry in Indonesia.
},
 year = {2024}
}

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TY  - JOUR
T1  - Influential Factors of Indonesian Cocoa Export: Evidence from FMOLS and DOLS Approaches

AU  - John Atsu Agbolosoo
AU  - Dick Chune Midamba
AU  - Ibrahim Massaquoi
AU  - Ratna Mega Sari
Y1  - 2024/11/12
PY  - 2024
N1  - https://doi.org/10.11648/j.ijae.20240906.12
DO  - 10.11648/j.ijae.20240906.12
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 295
EP  - 305
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20240906.12
AB  - The study investigated the determinants of cocoa exports using both FMOLS and DOLS approaches. The time series data were obtained from FAOSTAT and ICCO websites from the year 1990 to 2022. ADF and PP stationary unit roots were conducted to examine the stationarity of the variables while Johansen cointegration was used to verify the cointegrating among the variables. The outcome of the Johansen cointegration analysis suggests the existence of a cointegration relationship among the eight variables, indicating the presence of long-run relationships among the variables. The estimated results revealed that cocoa productivity, domestic cocoa production, domestic cocoa supply, exchange rates, and world cocoa prices affect Indonesian cocoa exports. Based on the estimated results and discussion, the study draws a conclusion that cocoa productivity, domestic cocoa production, exchange rates, and world cocoa prices positively and statistically significantly influenced cocoa exports while domestic cocoa supply negatively affected Indonesian cocoa exports. The study recommends that the government of Indonesia should stabilize the fluctuating exchange rates and encourage cocoa production via higher productivity by practicing farm rehabilitation practices to increase productivity and cocoa beans for exports. Moreover, the supply of cocoa beans should also be increased by increasing domestic producer prices. These key determinants are crucial for policymakers and industry stakeholders to understand and address to enhance the competitiveness and growth of the cocoa export industry in Indonesia.

VL  - 9
IS  - 6
ER  -

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Author Information

John Atsu Agbolosoo

Department of Agricultural Economics, Institut Pertanian Bogor University, Bogor, Indonesia

Contact Email

http://orcid.org/0000-0003-3532-3099
Dick Chune Midamba

Department of Agribusiness and Rural Development, Gulu University, Gulu, Uganda

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http://orcid.org/0000-0003-4467-419X
Ibrahim Massaquoi

Department of Economics, Indonesia International Islamic University, Depok, Indonesia

Contact Email

http://orcid.org/0000-0003-4467-419X
Ratna Mega Sari

Department of Agricultural Economics, Institut Pertanian Bogor University, Bogor, Indonesia

Contact Email

http://orcid.org/0009-0006-1072-3263

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APA Style

Agbolosoo, J. A., Midamba, D. C., Massaquoi, I., Sari, R. M. (2024). Influential Factors of Indonesian Cocoa Export: Evidence from FMOLS and DOLS Approaches. International Journal of Agricultural Economics, 9(6), 295-305. https://doi.org/10.11648/j.ijae.20240906.12

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ACS Style

Agbolosoo, J. A.; Midamba, D. C.; Massaquoi, I.; Sari, R. M. Influential Factors of Indonesian Cocoa Export: Evidence from FMOLS and DOLS Approaches. Int. J. Agric. Econ. 2024, 9(6), 295-305. doi: 10.11648/j.ijae.20240906.12

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AMA Style

Agbolosoo JA, Midamba DC, Massaquoi I, Sari RM. Influential Factors of Indonesian Cocoa Export: Evidence from FMOLS and DOLS Approaches. Int J Agric Econ. 2024;9(6):295-305. doi: 10.11648/j.ijae.20240906.12

Copy | Download

@article{10.11648/j.ijae.20240906.12,
  author = {John Atsu Agbolosoo and Dick Chune Midamba and Ibrahim Massaquoi and Ratna Mega Sari},
  title = {Influential Factors of Indonesian Cocoa Export: Evidence from FMOLS and DOLS Approaches
},
  journal = {International Journal of Agricultural Economics},
  volume = {9},
  number = {6},
  pages = {295-305},
  doi = {10.11648/j.ijae.20240906.12},
  url = {https://doi.org/10.11648/j.ijae.20240906.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20240906.12},
  abstract = {The study investigated the determinants of cocoa exports using both FMOLS and DOLS approaches. The time series data were obtained from FAOSTAT and ICCO websites from the year 1990 to 2022. ADF and PP stationary unit roots were conducted to examine the stationarity of the variables while Johansen cointegration was used to verify the cointegrating among the variables. The outcome of the Johansen cointegration analysis suggests the existence of a cointegration relationship among the eight variables, indicating the presence of long-run relationships among the variables. The estimated results revealed that cocoa productivity, domestic cocoa production, domestic cocoa supply, exchange rates, and world cocoa prices affect Indonesian cocoa exports. Based on the estimated results and discussion, the study draws a conclusion that cocoa productivity, domestic cocoa production, exchange rates, and world cocoa prices positively and statistically significantly influenced cocoa exports while domestic cocoa supply negatively affected Indonesian cocoa exports. The study recommends that the government of Indonesia should stabilize the fluctuating exchange rates and encourage cocoa production via higher productivity by practicing farm rehabilitation practices to increase productivity and cocoa beans for exports. Moreover, the supply of cocoa beans should also be increased by increasing domestic producer prices. These key determinants are crucial for policymakers and industry stakeholders to understand and address to enhance the competitiveness and growth of the cocoa export industry in Indonesia.
},
 year = {2024}
}

Copy | Download

TY  - JOUR
T1  - Influential Factors of Indonesian Cocoa Export: Evidence from FMOLS and DOLS Approaches

AU  - John Atsu Agbolosoo
AU  - Dick Chune Midamba
AU  - Ibrahim Massaquoi
AU  - Ratna Mega Sari
Y1  - 2024/11/12
PY  - 2024
N1  - https://doi.org/10.11648/j.ijae.20240906.12
DO  - 10.11648/j.ijae.20240906.12
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 295
EP  - 305
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20240906.12
AB  - The study investigated the determinants of cocoa exports using both FMOLS and DOLS approaches. The time series data were obtained from FAOSTAT and ICCO websites from the year 1990 to 2022. ADF and PP stationary unit roots were conducted to examine the stationarity of the variables while Johansen cointegration was used to verify the cointegrating among the variables. The outcome of the Johansen cointegration analysis suggests the existence of a cointegration relationship among the eight variables, indicating the presence of long-run relationships among the variables. The estimated results revealed that cocoa productivity, domestic cocoa production, domestic cocoa supply, exchange rates, and world cocoa prices affect Indonesian cocoa exports. Based on the estimated results and discussion, the study draws a conclusion that cocoa productivity, domestic cocoa production, exchange rates, and world cocoa prices positively and statistically significantly influenced cocoa exports while domestic cocoa supply negatively affected Indonesian cocoa exports. The study recommends that the government of Indonesia should stabilize the fluctuating exchange rates and encourage cocoa production via higher productivity by practicing farm rehabilitation practices to increase productivity and cocoa beans for exports. Moreover, the supply of cocoa beans should also be increased by increasing domestic producer prices. These key determinants are crucial for policymakers and industry stakeholders to understand and address to enhance the competitiveness and growth of the cocoa export industry in Indonesia.

VL  - 9
IS  - 6
ER  -

Copy | Download