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The Integration of Rice Market in Indonesia as an Archipelago Country (Vector Error Correction Model Analysis)

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@article{IJASEIT11264,
   author = {Desi Aryani and Ronnie Susman Natawidjaja and Trisna Insan Noor and Andy Mulyana},
   title = {The Integration of Rice Market in Indonesia as an Archipelago Country (Vector Error Correction Model Analysis)},
   journal = {International Journal on Advanced Science, Engineering and Information Technology},
   volume = {11},
   number = {4},
   year = {2021},
   pages = {1599--1605},
   keywords = {Distribution patterns; price disparity; price transmission; market integration.},
   abstract = {Indonesia is the third-largest rice producer in the world after China and India. Indonesia has different rice distribution patterns with continental countries such as China and India as archipelagic countries. The rice distribution pattern in Indonesia is still problematic, as seen from the high price disparity between producer and consumer level and regions. A considerable price disparity reflects an inefficient market, as prices are not transmitted perfectly between regions within a single region. This study aimed to analyze the integration of the Indonesian rice market, which considered scattered locations geographically separated by the ocean. Market mechanisms that assume the spontaneous movement of goods or services due to price differences cannot fully occur due to physical and infrastructure constraints. This research used the Vector Autoregression method, which is specified as Vector Error Correction Model. The results show that the Indonesian rice market is not fully integrated. In the long run, there is still an independent rice market. It is indicating a low level of efficiency of the rice market. The geographic condition of the Indonesia archipelago causes perfect market integration to be difficult to achieve. Improvement of the infrastructure in transportation and communication will make the flow of rice more efficient from surplus to deficit area. The market is segmented into several points in some areas based on the island. This means that controlling the rice market can not be concentrated at one point, but control must be done at the determinants market spread across every island in Indonesia.},
   issn = {2088-5334},
   publisher = {INSIGHT - Indonesian Society for Knowledge and Human Development},
   url = {http://ijaseit.insightsociety.org/index.php?option=com_content&view=article&id=9&Itemid=1&article_id=11264},
   doi = {10.18517/ijaseit.11.4.11264}
}

EndNote

%A Aryani, Desi
%A Natawidjaja, Ronnie Susman
%A Noor, Trisna Insan
%A Mulyana, Andy
%D 2021
%T The Integration of Rice Market in Indonesia as an Archipelago Country (Vector Error Correction Model Analysis)
%B 2021
%9 Distribution patterns; price disparity; price transmission; market integration.
%! The Integration of Rice Market in Indonesia as an Archipelago Country (Vector Error Correction Model Analysis)
%K Distribution patterns; price disparity; price transmission; market integration.
%X Indonesia is the third-largest rice producer in the world after China and India. Indonesia has different rice distribution patterns with continental countries such as China and India as archipelagic countries. The rice distribution pattern in Indonesia is still problematic, as seen from the high price disparity between producer and consumer level and regions. A considerable price disparity reflects an inefficient market, as prices are not transmitted perfectly between regions within a single region. This study aimed to analyze the integration of the Indonesian rice market, which considered scattered locations geographically separated by the ocean. Market mechanisms that assume the spontaneous movement of goods or services due to price differences cannot fully occur due to physical and infrastructure constraints. This research used the Vector Autoregression method, which is specified as Vector Error Correction Model. The results show that the Indonesian rice market is not fully integrated. In the long run, there is still an independent rice market. It is indicating a low level of efficiency of the rice market. The geographic condition of the Indonesia archipelago causes perfect market integration to be difficult to achieve. Improvement of the infrastructure in transportation and communication will make the flow of rice more efficient from surplus to deficit area. The market is segmented into several points in some areas based on the island. This means that controlling the rice market can not be concentrated at one point, but control must be done at the determinants market spread across every island in Indonesia.
%U http://ijaseit.insightsociety.org/index.php?option=com_content&view=article&id=9&Itemid=1&article_id=11264
%R doi:10.18517/ijaseit.11.4.11264
%J International Journal on Advanced Science, Engineering and Information Technology
%V 11
%N 4
%@ 2088-5334

IEEE

Desi Aryani,Ronnie Susman Natawidjaja,Trisna Insan Noor and Andy Mulyana,"The Integration of Rice Market in Indonesia as an Archipelago Country (Vector Error Correction Model Analysis)," International Journal on Advanced Science, Engineering and Information Technology, vol. 11, no. 4, pp. 1599-1605, 2021. [Online]. Available: http://dx.doi.org/10.18517/ijaseit.11.4.11264.

RefMan/ProCite (RIS)

TY  - JOUR
AU  - Aryani, Desi
AU  - Natawidjaja, Ronnie Susman
AU  - Noor, Trisna Insan
AU  - Mulyana, Andy
PY  - 2021
TI  - The Integration of Rice Market in Indonesia as an Archipelago Country (Vector Error Correction Model Analysis)
JF  - International Journal on Advanced Science, Engineering and Information Technology; Vol. 11 (2021) No. 4
Y2  - 2021
SP  - 1599
EP  - 1605
SN  - 2088-5334
PB  - INSIGHT - Indonesian Society for Knowledge and Human Development
KW  - Distribution patterns; price disparity; price transmission; market integration.
N2  - Indonesia is the third-largest rice producer in the world after China and India. Indonesia has different rice distribution patterns with continental countries such as China and India as archipelagic countries. The rice distribution pattern in Indonesia is still problematic, as seen from the high price disparity between producer and consumer level and regions. A considerable price disparity reflects an inefficient market, as prices are not transmitted perfectly between regions within a single region. This study aimed to analyze the integration of the Indonesian rice market, which considered scattered locations geographically separated by the ocean. Market mechanisms that assume the spontaneous movement of goods or services due to price differences cannot fully occur due to physical and infrastructure constraints. This research used the Vector Autoregression method, which is specified as Vector Error Correction Model. The results show that the Indonesian rice market is not fully integrated. In the long run, there is still an independent rice market. It is indicating a low level of efficiency of the rice market. The geographic condition of the Indonesia archipelago causes perfect market integration to be difficult to achieve. Improvement of the infrastructure in transportation and communication will make the flow of rice more efficient from surplus to deficit area. The market is segmented into several points in some areas based on the island. This means that controlling the rice market can not be concentrated at one point, but control must be done at the determinants market spread across every island in Indonesia.
UR  - http://ijaseit.insightsociety.org/index.php?option=com_content&view=article&id=9&Itemid=1&article_id=11264
DO  - 10.18517/ijaseit.11.4.11264

RefWorks

RT Journal Article
ID 11264
A1 Aryani, Desi
A1 Natawidjaja, Ronnie Susman
A1 Noor, Trisna Insan
A1 Mulyana, Andy
T1 The Integration of Rice Market in Indonesia as an Archipelago Country (Vector Error Correction Model Analysis)
JF International Journal on Advanced Science, Engineering and Information Technology
VO 11
IS 4
YR 2021
SP 1599
OP 1605
SN 2088-5334
PB INSIGHT - Indonesian Society for Knowledge and Human Development
K1 Distribution patterns; price disparity; price transmission; market integration.
AB Indonesia is the third-largest rice producer in the world after China and India. Indonesia has different rice distribution patterns with continental countries such as China and India as archipelagic countries. The rice distribution pattern in Indonesia is still problematic, as seen from the high price disparity between producer and consumer level and regions. A considerable price disparity reflects an inefficient market, as prices are not transmitted perfectly between regions within a single region. This study aimed to analyze the integration of the Indonesian rice market, which considered scattered locations geographically separated by the ocean. Market mechanisms that assume the spontaneous movement of goods or services due to price differences cannot fully occur due to physical and infrastructure constraints. This research used the Vector Autoregression method, which is specified as Vector Error Correction Model. The results show that the Indonesian rice market is not fully integrated. In the long run, there is still an independent rice market. It is indicating a low level of efficiency of the rice market. The geographic condition of the Indonesia archipelago causes perfect market integration to be difficult to achieve. Improvement of the infrastructure in transportation and communication will make the flow of rice more efficient from surplus to deficit area. The market is segmented into several points in some areas based on the island. This means that controlling the rice market can not be concentrated at one point, but control must be done at the determinants market spread across every island in Indonesia.
LK http://ijaseit.insightsociety.org/index.php?option=com_content&view=article&id=9&Itemid=1&article_id=11264
DO  - 10.18517/ijaseit.11.4.11264