Logit Analysis in Exporting Decision of Fisheries Company

Abstract

The purpose of this study is to determine the quantitative methods for export or domestic selling of fishery commodities as well as the factors influencing this decision for newly set up company. Data were taken from 50 companies producing fishery commodities that both export and domestic selling. Three models analyzed were LPM, Log LPM and Logit. Based on the MacKinnon, White and Davidson (MWD) test on the LPM with linear model and LPM with log linear model, the preferred one was the LPM with log linear models. However, considering the error rate in LPM model, a recommendation is to use the Logit model. Based on the estimation results using the Logit model, the most significant factor affecting fishery companies’ decision to export is the fisheries product standardization.

DOI: 10.5901/mjss.2015.v6n5s5p183