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Evaluating The Effect of Regional Trade Quota Policy on The Market Integration : A Case Study of The Indonesian Beef Industry


  • Utami, A.
  • Brummer, B.


This paper aims at analyzing the effect of regional trade quota policy to the market integration in the Indonesian beef industry which combines both vertical and spatial analysis. A panel co-integration approach was employed using monthly data covering nine producer areas and 18 consumer areas during 2008 until 2014. The degree of market integration was analyzed by applying a panel heterogeneous model developed by Pesaran-Shin and Smith (1999) from 117 trade pairs. The results found that the quota policy has a significant effect in the adjustment process between prices along the supply chain in the whole trade pairs. The study also confirmed the significant effects of several other variables representing the trade cost, and the degree of self-sufficiency rate in explaining the transmission of prices. Acknowledgement :

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  • Utami, A. & Brummer, B., 2018. "Evaluating The Effect of Regional Trade Quota Policy on The Market Integration : A Case Study of The Indonesian Beef Industry," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277312, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae18:277312

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    1. Zoltán Bakucs & Jan Fałkowski & Imre Fertő, 2014. "Does Market Structure Influence Price Transmission in the Agro-food Sector? A Meta-analysis Perspective," Journal of Agricultural Economics, Wiley Blackwell, vol. 65(1), pages 1-25, January.
    2. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    3. Spiller, Pablo T. & Wood, Robert O., 1988. "The estimation of transaction costs in arbitrage models," Journal of Econometrics, Elsevier, vol. 39(3), pages 309-326, November.
    4. Jochen Meyer & Stephan von Cramon‐Taubadel, 2004. "Asymmetric Price Transmission: A Survey," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 581-611, November.
    5. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
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    Agricultural and Food Policy;

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