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Rice Market Integration In Southern Sumatra, Indonesia

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  • Oktarina, Yetty

Abstract

This paper investigates rice market integration among five provinces in southern Sumatra using data from monthly retail rice markets during 2004-2009. The degree of integration was measured across provinces using vector error correction model. Result revealed that there is spatial market integration in southern Sumatra. Province of Bangka Belitung can make price adjustment more quickly compared to others provinces. In the long run period, rice price in Jambi province, Lampung province, and Bangka Belitung province became a reference price of rice in southern Sumatra. The study suggests policy recommendation for government to intervention this situation.

Suggested Citation

  • Oktarina, Yetty, 2015. "Rice Market Integration In Southern Sumatra, Indonesia," International Journal of Agricultural Research, Innovation and Technology (IJARIT), IJARIT Research Foundation, vol. 5(2), December.
    • Handle: RePEc:ags:ijarit:305382
    DOI: 10.22004/ag.econ.305382
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    References listed on IDEAS

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    1. Varela, Gonzalo & Aldaz-Carroll, Enrique & Iacovone, Leonardo, 2012. "Determinants of market integration and price transmission in Indonesia," Policy Research Working Paper Series 6098, The World Bank.
    2. Martin Ravallion, 1986. "Testing Market Integration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(1), pages 102-109.
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