ANALISIS PERILAKU INSTABILITAS, PERGERAKAN HARGA, EMPLOYMENT DAN INVESTASI DI DALAM SEKTOR PERTANIAN INDONESIA: Aplikasi Vector Error Correction Model

Andi Irawan
Additional contact information
Andi Irawan: IPB

Bulletin of Monetary Economics and Banking, 2005, vol. 8, issue 1, 79-115

Abstract: In a long run perspective, the aim of this research is to analyze the impact of the inflating- policy on the employment growth, and the agriculture investment. From a short run perspective, the aim covers (1) the identification of agriculture price instability on certain economic blocks, (2) the analysis of inflation behavior in the agriculture sector and its causality both to output price and input prices and the causality within the input prices. We apply the Vector Error Correction Model, Johansen Cointegration Test, and Granger Causality Test on a monthly series data from 1993:01 to 2002:12. The result shows the production and capital in agriculture sector are responsive to the output price change. This mean inflating the output price will effectively help to generate the output and a new investment in this sector. However, as the price shock can be a source of instability, the government should be careful to apply this price inflating policy. In addition, to solve the unemployment problem in agriculture sector, the government should apply the cost strategy, such as input price subsidy policy.

Keywords: Employment; Investasi; Agriculture; Johansen; Cointegration Vector Error Correction Model; Causality Test (search for similar items in EconPapers)
JEL-codes: C32 C52 O13 Q11 Q18 (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations:

Downloads: (external link)
https://bulletin.bmeb-bi.org/cgi/viewcontent.cgi?article=1450&context=bmeb (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:8:y:2005:i:1c:p:79-115

DOI: 10.21098/bemp.v8i1.129

Access Statistics for this article

Bulletin of Monetary Economics and Banking is currently edited by Paresh Narayan

More articles in Bulletin of Monetary Economics and Banking from Bank Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Lutzardo Tobing ( this e-mail address is bad, please contact ) and Jimmy Kathon ().