Analysis of rice price transmission in West Java, Indonesia
AbstractThis study aims to analyze the short and long-term transmission of rice prices at the farmer and consumer levels in West Java Province. This study uses monthly data on rice prices at the producer (farmer) and consumer levels from 2014–2020 in West Java Province, Indonesia. Meanwhile, the met...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Food & Agriculture |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311932.2023.2266198 |
| _version_ | 1797302002750849024 |
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| author | Bayu Kharisma Zefri Mario Sandy Indrawan |
| author_facet | Bayu Kharisma Zefri Mario Sandy Indrawan |
| author_sort | Bayu Kharisma |
| collection | DOAJ |
| description | AbstractThis study aims to analyze the short and long-term transmission of rice prices at the farmer and consumer levels in West Java Province. This study uses monthly data on rice prices at the producer (farmer) and consumer levels from 2014–2020 in West Java Province, Indonesia. Meanwhile, the method used in this study is Error Correction Model regression. The results show the existence of market integration and asymmetry in the vertical transmission of rice prices between farmers and consumers, both in the short and long term. The causes of asymmetric price transmission are the presence of uncompetitive behavior or abuse of market power among intermediary traders, especially in concentrated markets, as well as adjustment costs and menu costs. Therefore, the government needs to monitor rice prices regularly to ensure consumer affordability and profitability for farmers. In addition, the government must also have accurate information to identify irregularities or abuse of market power. Furthermore, the government needs to create policies encouraging the involvement of regionally-owned enterprises, the central government, and the private sector in the rice trading sector. |
| first_indexed | 2024-03-07T23:30:37Z |
| format | Article |
| id | doaj.art-7441058cf5b14ec98c592db8a6dca6fb |
| institution | Directory Open Access Journal |
| issn | 2331-1932 |
| language | English |
| last_indexed | 2024-03-07T23:30:37Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Food & Agriculture |
| spelling | doaj.art-7441058cf5b14ec98c592db8a6dca6fb2024-02-20T15:14:24ZengTaylor & Francis GroupCogent Food & Agriculture2331-19322023-12-019210.1080/23311932.2023.2266198Analysis of rice price transmission in West Java, IndonesiaBayu Kharisma0Zefri Mario Sandy Indrawan1Department of Economics, Universitas Padjadjaran, Sumedang, IndonesiaDivision of Monitoring and Evaluation, Regional Development Planning Agency of Garut Regency, IndonesiaAbstractThis study aims to analyze the short and long-term transmission of rice prices at the farmer and consumer levels in West Java Province. This study uses monthly data on rice prices at the producer (farmer) and consumer levels from 2014–2020 in West Java Province, Indonesia. Meanwhile, the method used in this study is Error Correction Model regression. The results show the existence of market integration and asymmetry in the vertical transmission of rice prices between farmers and consumers, both in the short and long term. The causes of asymmetric price transmission are the presence of uncompetitive behavior or abuse of market power among intermediary traders, especially in concentrated markets, as well as adjustment costs and menu costs. Therefore, the government needs to monitor rice prices regularly to ensure consumer affordability and profitability for farmers. In addition, the government must also have accurate information to identify irregularities or abuse of market power. Furthermore, the government needs to create policies encouraging the involvement of regionally-owned enterprises, the central government, and the private sector in the rice trading sector.https://www.tandfonline.com/doi/10.1080/23311932.2023.2266198rice price transmissionWest Javaerror correction modelQ10Q11Q12 |
| spellingShingle | Bayu Kharisma Zefri Mario Sandy Indrawan Analysis of rice price transmission in West Java, Indonesia Cogent Food & Agriculture rice price transmission West Java error correction model Q10 Q11 Q12 |
| title | Analysis of rice price transmission in West Java, Indonesia |
| title_full | Analysis of rice price transmission in West Java, Indonesia |
| title_fullStr | Analysis of rice price transmission in West Java, Indonesia |
| title_full_unstemmed | Analysis of rice price transmission in West Java, Indonesia |
| title_short | Analysis of rice price transmission in West Java, Indonesia |
| title_sort | analysis of rice price transmission in west java indonesia |
| topic | rice price transmission West Java error correction model Q10 Q11 Q12 |
| url | https://www.tandfonline.com/doi/10.1080/23311932.2023.2266198 |
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