United States demand for Indonesian plywood

Journal Article

Indonesia's exports of plywood are the largest in the world and a leading source of foreign exchange earnings. Although the industry's growth has been rapid, several studies indicate that it has been subsidised both directly and indirectly. What are the prospects for Indonesia to offset these subsidies by raising plywood prices as its share of key important markets grows? This paper shed light on this question by analysing econometrically the United States' imports of Indonesian plywood from July 1979 to December 1986, using a monthly import demand model. The results suggest that Indonesia's rapid expansion into the US plywood market has been due primarily to its low plywood prices, and that attempts to raise prices relative to those of competing export regions would result in significant reductions in market share. -Authors

Duke Authors

Cited Authors

  • Parthama, IBP; Vincent, JR

Published Date

  • 1992

Published In

  • Bulletin of Indonesian Economic Studies

Volume / Issue

  • 28 / 1

Start / End Page

  • 101 - 112