Factors Influencing Indonesia’s Cashew Export Volume

Abstract

Cashews contribute significantly to the Indonesian economy because it is one of the exporting countries. However, volume of exports tends to fluctuate, so it is necessary to identify the influencing factors. This study aims to analyze volume of Indonesian cashew exports and its determinants. Time series data for 8 variables during 1985–2016 were analyzed descriptively by multiple regression models. The results again show fluctuations in export volume and value over 1985–2016 period. Lowest export volume occurred in 1989, but its value was in 1985. Highest export volume and value occurred in 2015. National cashew export volume depends on the domestic cashew price, exchange rate and income per capita. Peanuts and coffee have a complementary relationship with cashews, while sugar has a substitution relationship with this commodity. Cashews are an inferior goods.

Keywords

• price, volume, domestic, export, cashews