Integration of the Rice Market in Aceh
The study is an attempt to examine and to evaluate the pricing efficiency of the medium quality rice market in Aceh, Indonesia through measuring the degree of market integration. Seoondary data were used in this study. Analysis was carried out on the basis of a priori theoretical, statistical a...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English English |
| Published: |
1989
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/8813/1/FEP_1989_3_A.pdf |
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| Summary: | The study is an attempt to examine and to evaluate the
pricing efficiency of the medium quality rice market in Aceh,
Indonesia through measuring the degree of market integration.
Seoondary data were used in this study. Analysis was
carried out on the basis of a priori theoretical, statistical
an:i econometric criteria by using the Time Series Processors
(TSP). The study utilises three models to test the efficiency
of the rice market in Aceh, namely correlation coefficient,
Ravallion's and Sims' models.
The result indicates that the correlation coefficients are
vague and spurious. The results produced by Ravallion's model
indicate that, except for Aceh Pidie, the central market (Aceh utara) appears to take the role as the price leader over that
of the other three local markets, i.e., Aceh Barat, Aceh
Tenggara and Aceh Timur. Aceh utara's retail price is
statistically significant in influencing retail prices of the
three local markets. Seasonality factor is apparently
significant only in Aceh Pidie and Aceh Timur.
'The results given by Sims' model indicate that, except for
Aceh Pidie, the causal relationship between retail prices in
the central market and local markets is unidirectional such
that retail price in the central market leads retail prices in
the local markets. A hi-directional feedback exists among
retail prices in the local markets and between farm and retail
prices in all sample districts. It can be concluded from these
results that rice prices both at retail and farm levels in
Aceh's rice market behave interdependently, hence implying an integrated market. |
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