Analysis of Rice Market Integration in Bengkulu

Analysis of Rice Market Integration in Bengkulu
Feb 09, 2008 at 01:39 PM
Author : Andi Irawan and Dewi Rosmayanti
Abstract :The goal of this research is to analyze spatial integration and vertical integration in Bengkulu rice markets dan its implication for policy application. Four rice markets were evaluated including Bengkulu Municipality, Rejang Lebong Regency, North Bengkulu Regency and South Bengkulu Regency. Weekly series data of 2001 to 2005 were used as sample data in analyzing spatial integration test. The vertical integration used weekly data of the period of 2002 to 2005 for Kota Bengkulu. Series data of 2001 to 2005 were used for Rejang Lebong, 2004 to 2005 for South Bengkulu and 2002 to 2005 for North Bengkulu. Quantitative methods used in this study were Johansen Cointegration Test, Vector Error Correction Model, and Granger Causality Test. The results indicate that: 1) Rice market in Bengkulu is imperfect on its spatial integration market, from which a shock in Bengkulu Municipality market could be transmited to South Bengkulu Regency and North Bengkulu markets, but not to Rejang Lebong market. Policy implication of this result give indication that to stabilize local rice markets in Bengkulu Province, priority intervention of local government is to stabilize in Bengkulu Municipality Market, because price stabilization in Bengkulu Municipality could be transmitted to other market in most districts in Bengkulu Province. 2) Vertical market integration in Bengkulu Municipality and South Bengkulu is imperfect, but statistically such integration is proved significantly in Rejang Lebong Regency and North Bengkulu.
Key words : rice markets, spatial integration, vertical integration, Johansen cointegration test, vector errror correction model, Granger causality test
The paper is written in Indonesian language. For those who require the paper, please contact us at publikasi_psekp@yahoo.co.id