Vol - 17, Issue - 09
About the Journal
Download [This article belongs to Volume - 17, Issue - 09]
Journal of the Austrian Society of Agricultural Economics (JASAE)
Journal ID : JASAE-19-09-2021-109
Total View : 376

Title : Spatial Market Integration of Red Chilies in Indonesia
by Dahlia Nauly, Alif Haidir Adana, Hafiz Dwiputro,
Abstract : Red chili is a horticultural commodity that has strategic and economic value. Red chili production is concentrated in certain areas. In addition, the difference in harvest time and its perishable characteristics add to the uncertainty of the amount of supply that can meet the demand for red chili. When there is an imbalance in supply and consumption, it causes parts of Indonesia to experience excess and shortage of red chili which then has an impact on price differences. Price differences lead to inter-provincial trade, thus encouraging market integration. The purpose of this study was to analyze the spatial market integration of red chili producers in Indonesia. The data utilized Agricultural Producer Price Statistics Foodcrops, Horticulture and Smallholder Estate Crops Subsectors from 2008 until 2020. The integration of the red chili commodity market in Indonesia is carried out using the Error Correction Model (ECM). The results indicate that chilies market in Indonesia was spatially integrated. The price information was transmitted along the other regions. The speed of convergence of chilies prices to equilibrium varies. The provinces in Java island has high magnitude of adjustment coefficient.

Our Certificates
Certificates
Certificates
Certificates
Certificates
Certificates
Certificates
Certificates
Certificates
Certificates
Certificates
Certificates
//