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

A. Utami and B. Brummer

No 277312, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: 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 :

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Date: 2018-07
New Economics Papers: this item is included in nep-agr, nep-int and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae18:277312

DOI: 10.22004/ag.econ.277312

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