PRICE ASYMMETRY IN INTERNATIONAL- INDONESIAN MARKETS OF SKIMMED MILK POWDER
This study examines the price transmission of skimmed milk powder (SMP) from exporting countries (United States of Australia, Belgium, and New Zealand) to the Indonesian market by using the Error Correction Model (ECM) method. Monthly SMP prices in the exporting countries and Indonesia from 2010 to...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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International Journal of Food and Agricultural Economics
2022-04-01
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| Series: | International Journal of Food and Agricultural Economics |
| Subjects: | |
| Online Access: | https://www.foodandagriculturejournal.com/vol10.no2.pp159.pdf |
| _version_ | 1828021739050762240 |
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| author | Sahara Sahara Bilfan Nur Aulia Rahman Mutiara Probokawuryan Syarifah Amaliah |
| author_facet | Sahara Sahara Bilfan Nur Aulia Rahman Mutiara Probokawuryan Syarifah Amaliah |
| author_sort | Sahara Sahara |
| collection | DOAJ |
| description | This study examines the price transmission of skimmed milk powder (SMP) from exporting countries (United States of Australia, Belgium, and New Zealand) to the Indonesian market by using the Error Correction Model (ECM) method. Monthly SMP prices in the exporting countries and Indonesia from 2010 to 2019 were utilized in the analysis. The results showed that transmission between exporting countries and Indonesia's SMP prices were asymmetric in the short run in which domestic market price responds faster when exporter market prices increase than when the latter fall. This implies inefficiencies in the import process due to the presence of transaction costs. Meanwhile, there was no asymmetric price transmission identified in the long run. |
| first_indexed | 2024-04-10T11:58:23Z |
| format | Article |
| id | doaj.art-94186e353b8e491dade94af4c35ad0fd |
| institution | Directory Open Access Journal |
| issn | 2147-8988 |
| language | English |
| last_indexed | 2024-04-10T11:58:23Z |
| publishDate | 2022-04-01 |
| publisher | International Journal of Food and Agricultural Economics |
| record_format | Article |
| series | International Journal of Food and Agricultural Economics |
| spelling | doaj.art-94186e353b8e491dade94af4c35ad0fd2023-02-15T16:16:44ZengInternational Journal of Food and Agricultural EconomicsInternational Journal of Food and Agricultural Economics2147-89882022-04-01102159172PRICE ASYMMETRY IN INTERNATIONAL- INDONESIAN MARKETS OF SKIMMED MILK POWDERSahara Sahara0https://orcid.org/0000-0003-0905-6388Bilfan Nur Aulia Rahman1https://orcid.org/0000-0002-4669-7582Mutiara Probokawuryan2https://orcid.org/0000-0001-8846-9054Syarifah Amaliah3https://orcid.org/0000-0001-6148-9717IPB University (Bogor Agricultural University), Department of Economics-Faculty of Economics and Management, IndonesiaIPB University (Bogor Agricultural University), Department of Economics-Faculty of Economics and Management, IndonesiaIPB University (Bogor Agricultural University), Department of Economics-Faculty of Economics and Management, IndonesiaIPB University (Bogor Agricultural University), Department of Economics-Faculty of Economics and Management, IndonesiaThis study examines the price transmission of skimmed milk powder (SMP) from exporting countries (United States of Australia, Belgium, and New Zealand) to the Indonesian market by using the Error Correction Model (ECM) method. Monthly SMP prices in the exporting countries and Indonesia from 2010 to 2019 were utilized in the analysis. The results showed that transmission between exporting countries and Indonesia's SMP prices were asymmetric in the short run in which domestic market price responds faster when exporter market prices increase than when the latter fall. This implies inefficiencies in the import process due to the presence of transaction costs. Meanwhile, there was no asymmetric price transmission identified in the long run.https://www.foodandagriculturejournal.com/vol10.no2.pp159.pdfasymmetrical pricesecmskimmed milk powder prices |
| spellingShingle | Sahara Sahara Bilfan Nur Aulia Rahman Mutiara Probokawuryan Syarifah Amaliah PRICE ASYMMETRY IN INTERNATIONAL- INDONESIAN MARKETS OF SKIMMED MILK POWDER International Journal of Food and Agricultural Economics asymmetrical prices ecm skimmed milk powder prices |
| title | PRICE ASYMMETRY IN INTERNATIONAL- INDONESIAN MARKETS OF SKIMMED MILK POWDER |
| title_full | PRICE ASYMMETRY IN INTERNATIONAL- INDONESIAN MARKETS OF SKIMMED MILK POWDER |
| title_fullStr | PRICE ASYMMETRY IN INTERNATIONAL- INDONESIAN MARKETS OF SKIMMED MILK POWDER |
| title_full_unstemmed | PRICE ASYMMETRY IN INTERNATIONAL- INDONESIAN MARKETS OF SKIMMED MILK POWDER |
| title_short | PRICE ASYMMETRY IN INTERNATIONAL- INDONESIAN MARKETS OF SKIMMED MILK POWDER |
| title_sort | price asymmetry in international indonesian markets of skimmed milk powder |
| topic | asymmetrical prices ecm skimmed milk powder prices |
| url | https://www.foodandagriculturejournal.com/vol10.no2.pp159.pdf |
| work_keys_str_mv | AT saharasahara priceasymmetryininternationalindonesianmarketsofskimmedmilkpowder AT bilfannurauliarahman priceasymmetryininternationalindonesianmarketsofskimmedmilkpowder AT mutiaraprobokawuryan priceasymmetryininternationalindonesianmarketsofskimmedmilkpowder AT syarifahamaliah priceasymmetryininternationalindonesianmarketsofskimmedmilkpowder |