Cocoa Export Performance to Economic Growth in South Sulawesi

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Indraswati Tri Abdi Reviane, Indah Sari Pananrangi

Abstract

This research aims to analyze the factors influencing cocoa export performance to economic growth in South Sulawesi. The factors include foreign direct investment (FDI), real exchange rate (RER), and the growth of GDP in export destination countries. The research was completed by processing quarterly data about export trading from South Sulawesi in 2008 – 2015 to top ten main destination countries of cocoa export. Path analysis method was used in this research; export performance as an intervening variable; and economic growth is an endogenous variable. The results reveal that the export performance has a positive and significant influence on the economic growth. Furthermore, the growth of GDP in partner countries has a positive and significant influence on the economic growth indirectly through the export performance, while both FDI and RER variables does not have a significant influence.

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