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Volatility of volume imports of major food commodities in Indonesia

Author

Listed:
  • Adrian D. Lubis
  • Dian V. Panjaitan

    (Ministry of Trade, Republic of Indonesia
    Departmen of Economics, Faculty of Economics and Management Bogor Agricultural University)

Abstract

The purpose of this study is to determine the impact of an increase in the volume of imports and import tariff on domestic prices. The method used in this study are ARCH, GARCH, VECM, and OLS using the data of import volume of Indonesia and Indonesia's domestic market prices during the period June 2007 until March 2011. The result shows that there is an increasing volume of imports which might increase the price of rice, wheat, milk, and sugar in the domestic market. The paper also finds that an increase in import tariff on these commodities lowers prices in the domestic market.

Suggested Citation

  • Adrian D. Lubis & Dian V. Panjaitan, 2012. "Volatility of volume imports of major food commodities in Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 4(2), pages 127-142, April.
    • Handle: RePEc:uii:journl:v:4:y:2012:i:2:p:127-142
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    References listed on IDEAS

    as
    1. Steven T. Berry & Michael J. Roberts & Wolfram Schlenker, 2012. "Corn Production Shocks in 2012 and Beyond: Implications for Food Price Volatility," NBER Working Papers 18659, National Bureau of Economic Research, Inc.
    2. Cadot, Olivier & Olarreaga, Marcelo & Tschopp, Jeanne, 2009. "Do Trade Agreements Reduce the Volatility of Agricultural Distortions?," Agricultural Distortions Working Paper Series 50303, World Bank.
    3. Jordaan, Henry & Grove, Bennie & Jooste, Andre & Alemu, A.G., 2007. "Measuring the Price Volatility of Certain Field Crops in South Africa using the ARCH/GARCH Approach," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(3), pages 1-17, September.
    4. Alex F. McCalla, 2009. "World Food Prices: Causes and Consequences," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(1), pages 23-34, March.
    5. Pursell, Garry & Gulati, Ashok & Gupta, Kanupriya, 2007. "Distortions to Agricultural Incentives in India," Agricultural Distortions Working Paper Series 48483, World Bank.
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    More about this item

    Keywords

    Volatility; import tariff; import volume;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

    Statistics

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