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\hypersetup{pdftitle={Competitiveness of Indonesia Coffee in United States of America Market: A Two"=Stage Demand Approach},pdfauthor={Ahmad Syariful Jamil, Resti Prastika Destiarni, Yufita Listiana},pdfsubject={Tropentag 2016: Abstract},pdfkeywords={Coffee, competitiveness, import demand, Indonesia},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 18-21, 2016, Vienna, Austria}}\\[1ex] \Large{``Solidarity in a competing world ---\\fair use of resources''\\[2ex]}}
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\Large{\textbf{Competitiveness of Indonesia Coffee in United States of America Market: A Two"=Stage Demand Approach\footnote{\textbf{Contact Address:} Ahmad Syariful Jamil, Bogor Agricultural University, Agribusiness, Raya Cibanteng Proyek Street Gang Lestari Number 2 Ciampea, 16620~Bogor, Indonesia, \mbox{e-mail}: \email{ahmadsyarifuljamil@gmail.com}}\\[0.8ex]}}
\normalsize{\textsc{Ahmad Syariful Jamil$^{1}$, Resti Prastika Destiarni$^{1}$, Yufita Listiana$^{2}$}}
\end{center}
\begin{itemize*}
\item[]{\small{\textit{$^{1}$Bogor Agricultural University, Agribusiness, Indonesia}}}
\item[]{\small{\textit{$^{2}$Bogor Agricultural University, Rural Planning and Development, Indonesia}}}
\end{itemize*}
\index[author]{Jamil, Ahmad Syariful}
\index[author]{Destiarni, Resti Prastika}
\index[author]{Listiana, Yufita}
\begin{center}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
The efforts towards the liberalisation of trade in agricultural products have had an impact on coffee recently. The impact of open market in world coffee commodity causes the excess supply of world coffee. On the other hand, world coffee demand has stagnated, even in some importer countries, it has decreased so that it causes high level of competition among producers. This study represents Indonesia's coffee competitiveness in United States market as the largest coffee importer. A two"=stage demand equation was employed in this study. The first equation analysed the United state demand by using a double logarithmic"=linear approach to identify price responses generally in international trade. The second equation distinguished commodities by the origin country using an error correction almost ideal demand system (ECAIDS) approach. Error Correction Mechanism (ECM) was employed in order to accommodate the stationary of the series data. The result implied that a change of tea price as a substitute product of coffee strongly affected on coffee import demand. The increasing of US's import expenditure would increase Indonesia export share which is relatively smaller than the increasing of other countries. Indonesia coffee had complementary relationship with Colombia coffee; however, with the other countries were substituted each other. An increasing on price of Indonesia coffee in the US market is expected to decrease Indonesia sales revenue, it is reflected by the value of own price elasticity.  Finally, Indonesia had a relatively weak market competitiveness and to improve its market competitiveness, Indonesia should become more competitive in cost allocation by improving the productivity and its quality through promotion. }

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\noindent \textbf{Keywords:} Coffee, competitiveness, import demand, Indonesia
\index[key]{Coffee}
\index[key]{Competitiveness}
\index[key]{Import demand}
\index[key]{Indonesia}
\end{document}
