Articles

A Study of Export Barrier in Garut Leather Tannery Industry

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The economic development of a country currently cannot be separated from the condition of global economy. Economic relations between country is an influencing factor for the development of both country involved. Therefore, export activity of an industry is very important for the development of a country’s economy. Based on data obtained through the Ministry of Trade of the Republic of Indonesia, export distribution in the form of footwear is 86%, leather finished goods are 13%, and leather is 1%. According to these data, it can be seen that the contribution of the leather tanning industry which is included in Leather Goods is very small in the total export distribution of leather. Meanwhile, by carrying out export activities, the leather industry will benefitted because it will open access to new customers who will have the potential to increase revenue and long-term growth. The data for this research was collected through 52 factory owners in this industry. After the data has been collected, an exploratory factor analysis was conducted to see how many factors become the barrier of exporting in Garut leather tannery industry. The result of this research is there are three factors that become the barrier to do export in Garut leather tannery industry, namely functional, international and governmental barriers. Meanwhile the result of descriptive analysis shows that Garut leather tannery industry perceive high cost of capital to finance exports, difficulties in organizing promotional activities abroad, and lack of financial resources to conduct market research in overseas markets as the barrier to do export activities. The findings suggest that the government should support both the knowledge and infrastructure regarding export for all the business owners in Garut leather tannery industry, meanwhile the business owners should also be active in searching for business opportunities in international market. For future studies, it was suggested to consider management’s entrepreneurship capabilities as a factor that can hinder exports.

Factors Contributing to Brain Drain in Thailand

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The main objective of this study is to find the main factors which affect the migration rate and may lead to brain drain. Brain drain is the migration of highly trained or skilled people to wealthier countries where they can gain more salary and better standard of living. Moreover, brain drain can result in losing professionals and cause deterring effects on the countries. This has become an important issue as in recent years, more people have been leaving their countries to more developed countries. Thus, it is clear that brain drain is a significant issue in various countries including Thailand. Nevertheless, some countries, for instance Taiwan, have developed policies in order to improve their citizens’ life qualities. Finding the main causes of migration may help us understand more about the situation, which may lead to a solution for this issue. There are mainly three levels of brain drain, Geographical brain drain, Organizational brain drain and Industrial brain drain. In this paper, we mainly discuss Geographical brain drain since it has the most substantial impact on the country. Based on 250 respondents who are Thai inhabitants, the result shows that the most significant reason for migration is the standard of living, followed by social conditions.