Determinants of Export Competitiveness of Coffee Commodities in South Sulawesi

  • Ummul Khair Master of Agribusiness Study Program, Postgraduate Program,Universitas Muhammadiyah Makassar
  • Sri Mardiyati Master of Agribusiness Study Program, Postgraduate Program,Universitas Muhammadiyah Makassar
  • Amruddin Master of Agribusiness Study Program, Postgraduate Program,Universitas Muhammadiyah Makassar
  • Mohammad Natsir Master of Agribusiness Study Program, Postgraduate Program,Universitas Muhammadiyah Makassar
  • Muh. Arifin Fattah Master of Agribusiness Study Program, Postgraduate Program,Universitas Muhammadiyah Makassar
Keywords: Export competitiveness, Revealed Comparative Advantage, Coffee commodity, World Coffe Prices, Exchange Rate.

Abstract

Negotiation and strategic positioning in international trade are crucial for maximizing the economic benefits of agricultural commodities. This study aims to analyze the determinants of the export competitiveness of coffee from South Sulawesi, Indonesia, during the 2010–2024 period. The independent variables examined include coffee production capacity, world coffee prices, and the exchange rate of the Indonesian Rupiah (IDR) against the US Dollar (USD), while the dependent variable is export competitiveness, measured by the Revealed Comparative Advantage (RCA) index. Utilizing an Ordinary Least Squares (OLS) regression model, the findings reveal that the model explains 70.5% of the variance in coffee export competitiveness. Statistically, both coffee production and the exchange rate exhibit a significant negative impact on the RCA index, suggesting structural vulnerabilities related to supply quality and high dependency on imported agricultural inputs. Conversely, world coffee prices do not significantly influence export competitiveness, indicating the position of local exporters as price takers bound by long-term forward contracts. These findings emphasize the urgent need for strategic policy shifts from quantity-oriented agricultural expansion to quality standardization and upstream cost stabilization.

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Published
2026-03-03
How to Cite
Ummul Khair, Sri Mardiyati, Amruddin, Mohammad Natsir, & Muh. Arifin Fattah. (2026). Determinants of Export Competitiveness of Coffee Commodities in South Sulawesi. International Journal of Economics, Business and Innovation Research, 5(02), 453-463. https://doi.org/10.63922/ijebir.v5i02.3037