Export Relevance of Czech Industrial Technologies to Indonesia

Ing. Michal Wasserbauer

Doctoral thesis

Abstract:

The thesis provides an overall current insight into the issue of export of Czech industry technologies into Indonesia agricultural and other sectors. The thesis involves the creation of a mathematical model of the Indonesian industry technologies market to make it possible to predict the future behavior, and on that account also impact on Czech export to Indonesia. The findings in this thesis can be adopted to strengthen the economic relations between two countries whose potential and opportunities remain very big. Based on experimental data, mathematical analysis (gravity trade and multiple regression model) was used to describe the behavior of the Indonesian industrial technology market and its importance to Czech imports. Data collected from the market analysis and the mathematical model developed can help boost Czech import industrial technologies to Indonesia. Further, it can apply in decision-making for government offices in both Czech Republic and Indonesia. From the models where we re-estimated our gravity model for total import, after controlling for the importance of technological goods in Indonesian import, we achieved the conclusion thatthe size of the country of origin is an important factor for explaining the total import of Indonesia from EU countries include the Czech Republic. Furthermore, in this new mathematical model setting, we concluded that the positive effect of the economic size of the country of origin is significantly decreased with the increase in the share of machinery and technological goods import. And the size of the Indonesian economy has positive impact on the import of the total goods, specifically, 1% increase in Indonesian GDP, increases total import from Czech by about 4.1%, the capital goods import by about 3.9% and machinery and technological goods import by about 3.6%. The study has outlined the ways through which improved economic relations between the Czech Republic and Indonesia are bound to affect the export trade in the former. Based on a mathematical model, the study has provided a way through which exporters can predict future trends in the trade flows for specific technology-related products.

Keywords

mathematical model, import, market, prediction, behavior, strategy

Language used: English

Date on which the thesis was submitted / produced: 20. 1. 2020

Thesis defence

• Supervisor: prof. Ing. David Herák, Ph.D.

Czech University of Life Sciences Prague

Faculty of Engineering

Doctoral programme / field:
Agricultural Specialization / Marketing of Machinery and Technical Systems