Abstrak/Abstract |
This research aims to investigate the effect of globalization on coffee exports in the producing countries. The research used the Generalized Method of Moment (GMM) and system GMM (sys-GMM) to analyze the effect of globalization on coffee export in twenty-four producing countries. We use secondary data from various international databases spanning 1990 to 2018. After conducting several analysis steps, the sys-GMM is the best model for analyzing data in this research. We find that export lag, gross domestic product (GDP), exchange rate, and the political globalization index (PGI) positively and significantly impact coffee exports. We were surprised to learn that the trade globalization index (TGI) had a negative and significant effect on coffee exports. Meanwhile, coffee exports are unaffected by the level of export prices and the human capital index. |