Assessing the Impact of the Jepara Furniture Value Chain Project

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Virginia Tech


This thesis assesses the impact of the Jepara Furniture Value Chain (FVC) project, which was conducted by the Center for International Forestry Research (CIFOR) to address challenges faced by small-scale furniture producers in Jepara, Indonesia. This assessment focuses on the effect of membership in the APKJ, a producer association started as part of the project. The propensity score for association membership was estimated using unchanging firm and owner characteristics, as well as information recalled about firm operations in 2009 (before the association was formed). Propensity score matching was used to compare outcome variables of association members and non-members. Results suggest that membership in the APKJ does not have a significant effect on profit levels. Using differenced current and recalled marketing and production behaviors as outcome variables with propensity score matching indicates that members have improved their bargaining position and marketing behaviors more than non-members since 2009. Additionally, APKJ members are more likely to have obtained certificates of timber legality



propensity score matching, value chain, furniture, producer association, Indonesia