Determinants of Indonesia’s Shrimp Exports: A Cross Country Analysis from Main Indonesia’s Shrimp Export Destination in the EU

This paper aims to see determinants of Indonesia’s Shrimp Exports in the EU by understanding the domestic value chain, the opportunity, barrier and non-barrier to international shrimp trade, the role of trade policy and tariff preferences, and also how the export demand model can explain the determinants of Indonesia’s shrimp export. Two methods of analysis are chosen that are qualitative analysis quantitative analysis. Qualitative or descriptive analysis used to see from supply side by using value chain analysis and also to describe the opportunity, barrier and non-barrier to international shrimp trade, the role of trade policy and tariff preference. While quantitative analysis used to see from demand side by using export demand model. Result and analysis shows that there are some problem faced by domestic shrimp industry and from barrier and non-trade barrier to international shrimp trade. Hovewer, trade policy and tariff preference like tariff reduction or GSP scheme open an opportunity for Indonesia’s shrimp export in international market, particularly to the EU. While the model used to explain factors affecting Indonesia’s shrimp export to the EU shows that GDP per capita, the price of shrimp export and dummy2 or dummy for new food hygiene regulation are statistically significant. The result indicates that GDP per capita affect positively and the price of shrimp export affect negatively to Indonesia’s shrimp exports as proposed in export demand theory by Goldstein and Khan.