Factors Affecting Clove Exports in North Sumatera Province

Abstract

This study aims to analyze the effect of production, the population of the destination country, the GDP of the destination country, the distance between the Province of North Sumatra and the destination country, and the exchange rate of the export destination country in US $ to the value of clove export in North Sumatra Province 2011-2015 based on gravity model in the countries of Singapore, Malaysia, Vietnam, United States, India, United Kingdom, and Taiwan. Data analysis method used is panel data regression analysis with Random Effect Model. The results of this study indicate that the production of cloves and Gross Domestic Product of export destination countries has a positive and significant influence, the distance between North Sumatra Province and export destination countries has a negative and significant effect on the value of clove exports in North Sumatra Province. While the number of population of export destination countries showed a positive and insignificant influence, the nominal exchange rate of export destination countries had negative and insignificant effect on clove export value in North Sumatera Province.