Causal Influence Analysis Model of Foreign Environment on Export Capability

Abstract

Abstract: The objectives of this research aim 1) To research the elements of the environment in foreign countries that affect the export capability and 2) To analyze the causal influence between the elements of the foreign environment on the export capability The researcher collected samples from a specific target group of 145 companies. Data were analyzed by using descriptive statistics. Moreover, the researcher also analyzed information by descriptive statistics.In the part of analytical statistics analyzed, researcher using factors analysis and the causal influence analysis between variables according to the conceptual framework by structural equation modeling. The results revealed that foreign situation had influence on export capability. On the contrary, the analysis showed that had positive influence on the capability of exporting as same as the export regulation and the Muslim consumption had positive influence on the capability of exporting.Assessment on goodness of fit from the model found that export capability was consistent with the empirical data, chi-square =133.60, the degrees of freedom = 114, chi -square relative (x2/df) =1.17, the probability (P-value) = 0.101, goodness of fit index (GFI) = 0.91, comparative fit index (CFI) = 0.95, Root mean square error of approximation (RMSEA) = 0.035.